The Utility of Insuring a Business Against Cyber Security Threats

Businesses may leave themselves highly vulnerable to liability and loss if they do not adequately equip themselves to deal with an array of cyber threats. The number of threats online are growing, and businesses must mount a strong defense. Cyber security insurance for businesses is an indispensable safeguard to mitigate their risk and respond swiftly when they experience a breach.

Customer Liability

Losing customers’ information to a cyber criminal could result in significant liability. Businesses must put customers on notice when they are able to confirm that specific customers’ data has been compromised. A policy covering this type of liability can help to pay for notification initiatives and also potentially address claims initiated against a company by customers.

Operating Crises

A malware intrusion that seizes a network could bring a company’s operations to a standstill. A responsive insurance carrier with expertise in fielding claims for cyber attacks understands the importance of taking fast remedial action.  A cyber security policy can give businesses the opportunity to isolate a vulnerability, resolve the issue, and restore lost data.

Getting business back to normal can be extremely challenging after a cybercriminal has infiltrated a company’s network through malware or a firewall deficiency. Because it is nearly impossible to wholly eliminate the looming threat of attacks, it is prudent for companies to prepare themselves to manage breaches effectively.