For today’s Tuesday with Tim, I wanted to discuss a very important topic that some businesses can unfortunately overlook. Cyber liability insurance is something that all businesses need and can benefit from. No matter what security or risk avoidance measures are put in place it is a matter of when you are going to have a cyber incident.
So, what exactly is cyber liability insurance? It is an insurance policy that is meant to protect a company from the results of a data breach or cyber-attack. This might include the costs of lawsuits from those whose data was leaked, the cost of notifying those affected, or the damages incurred to the reputation and productivity of a company. In the case of a cyber-attack, a policy may cover the cost to recover from a ransomware event, including sometimes paying the ransom. The last area that may or may not be covered is in a case where a user is tricked and unknowingly wires money to a cybercriminal. Since the user made the transfer willingly, even though they were tricked, it could still not be covered.
Of course, there is an array of different plans out there and you have to take time to look at which will be the best fit for your company. Financial institutions, schools, and hospitals would need a more comprehensive insurance policy than say a construction company because of the sensitivity of the information that their company has access to. It is also important to understand what is covered and what is not covered by the policy.
In my opinion, cyber liability insurance is a must-have for all businesses, big or small. People may think that because they own a small company, they don’t need to be insured. In actuality, small businesses make up about 28% of the companies targeted by hackers. This may not seem like a large number, but it can be detrimental to these businesses because they may not have the tools or resources to financially recover from a data breach.
Technology has become a mainstay of our daily lives, and at this point, all businesses need cyber liability insurance to properly protect their company. As an IT and cybersecurity company, PCH Technologies strongly recommends that all our clients have cyber insurance for their protection. We are considering requiring that all new clients we bring on have a cyber liability policy. PCH offers our clients top-tier security; however, nothing can ever be 100 percent within the ever-changing cyber landscape. Cyber liability insurance adds an extra layer of comfort and protection that is worth the spend for peace of mind and keeping your business safe.
If you would like to have some more details on cyber liability insurance, please check out our blog post: https://pchtechnologies.com/what-does-cyber-insurance-cover/