Why cyber liability insurance is imperative to your business in 2021?
What do every multinational and local businesses have pin common? They all run their business with the help of technology. Any company that uses technologies like email, website, social media, or stores confidential data electronically needs cyber liability coverage.
Cyber liability insurance is designed to specifically cover expenses, business losses, business interruption, and fines and penalties should a data breach happen to a business. Cyber liability insurance also protects businesses in the event of a ransomware attack.
Cyber liability coverage doesn’t protect you from a cyberattack. While you may not be able to prevent an attack, it can help protect your business from the fallout after a breach. Here’s why cyber liability insurance is imperative for your business today.
- Data is a critical business asset, but one not covered by standard property insurance. A cyber liability policy offers coverage for data restoration in the event of a loss.
- Specially if you trade in e-commerce and record customer financial data, you open your organisation to face severe penalties if you lose credit card data. Merchant service agreements will hold compromised retailers liable for: the cost of forensic investigation, re-issuing of new credit cards, and even the actual fraud of the stolen cards. Even the smallest retailer can be liable for costs that can soar well into the hundreds of thousands of rupees.
- Your electronic system downtime due to a cyberattack won’t be automatically covered by standard business interruption insurance. Cyber insurance offers coverage for lost profits associated with a cyber-related systems breakdown.
- Third-party data is valuable to your business, but it belongs to your suppliers and customers. However, you will be held accountable if any breaches occur to the third-party data stored at your end.
The world of cyber liability insurance can be confusing. With so many factors to consider and different policies to choose from, choosing the right coverage can be challenging. We at Unison have a team of experts with years of experience in navigating cyber liability issues. We evaluate your business’ risks and construct a policy tailored to address your needs.