If you have a website, then you probably need cyber liability insurance
Cyber attacks have made big headlines in recent years, with attacks on large corporations such as Target, meddling in elections across the world, and is even a form of warfare waged between nations. Many people have a vague notion of what cyber liability is, but the reality is that there are many types of cyber liability insurance policies out there that cover you for various types of cyber attacks and have vastly different coverage limits.
What is Cyber Liability Insurance?
Cyber liability insurance is a broad term that covers nearly any type of policy that covers some type of cyber attack. Part of the problem and confusion lies in what exactly a cyber attack is, because it can come in many different forms. Cyber attacks typically involved things such as:
- Data breaches
- Cost of restoring lost or stolen data
- Network hacks and ransoms
- Invasion of privacy or libel, slander, and defamation
- Reputational harm suffered by the company
- Errors and omissions claims as a result of a cyber attack
Cyber liability is the general term used to describe insurance that covers your business for any number of these types of attacks and claims. However, cyber liability insurance policies are not standardized, meaning there are very wide-ranging cyber liability policies that cover you for a lot of things – and there are also cyber liability policies that barely cover you for anything, or will narrow the focus to covering you for things such as stolen data, but not viruses or ransomware attacks.
Does Your Business Need Cyber Liability Insurance?
If your business has a website or any type of online presence, then it probably needs some type of cyber liability insurance. Even businesses that don’t operate a website could be at risk for certain types of crimes, such as credit card processing point-of-sale thefts.
Simply put, your business could probably benefit from some type of cyber liability insurance policy. You may be able to buy limited coverage through the same company that has your general liability insurance. For many small businesses, this limited, add-on type coverage could be enough, at least temporarily while you’re operating on a tight budget.
Cyber criminals generally target small businesses in particular because they know that many small businesses are more vulnerable. They don’t tend to have the network security in place that larger businesses have, many of them don’t have cyber liability insurance, and so they are almost forced to pay a ransom if they are hacked.
Buying cyber liability insurance is similar to buying life insurance: you could always buy more, but just having some type of policy in place is better than not having any type of coverage at all. Small businesses in particular are vulnerable to cyber attacks and could potentially be put out of business by one, so having the right type of cyber liability insurance could make the difference between staying open or being forced to close up shop.
Reach out to us to find out if you should have a Cyber Liability Insurance Policy.