Why Buy Cyber Security Insurance?
The sophistication of cyber crime is rapidly changing and creating new challenges for business owners and individuals in our tech-savvy world. Hackers are constantly coming up with new methods to gain access to our information and attempt to capitalize on its vulnerability and market value. The worst part? Cyber attacks target companies of all shapes and sizes.
Here are 6 reasons your company should invest in Cyber Liability:
- Privacy Laws: Forty-seven states and Washington D.C. require notification if personally identifiable information (PII) is lost, stolen, or disclosed during a breach. Cyber Liability will provide business interruption loss reimbursement, access to experts such as legal support and a credit monitoring company, and notification to those affected. It also extends to third-party claims alleging monetary loss as a result.
- Fines & Penalties: PII violations can carry stiff fines and penalties that are owed to the government. Cyber coverage can pay to defend your company against this type of regulatory enforcement and any subsequent fines and penalties incurred as a result.
- Reputation in Media: As brand trust and recognition remain the top reasons customers buy, the release of PII in a cyber-attack in the media can be especially harmful to a company’s reputation. Because most companies create a variety of media content through different channels, competitors or other third parties can allege copyright or trademark violations, invasion of privacy, or other intellectual property claims. Cyber coverage can protect companies from these allegations to salvage the reputation.
- Electronic Downfall: Hackers can destroy or damage an organization’s electronic records, or worse, disable or completely shut down an organization’s network. Cyber coverage will pay for the costs to restore or recreate these records as well as pay for the loss of income while the network is awaiting restoration.
- Vendors: Data entrusted to third-party vendors such as payroll, credit card processors, or others can be at risk. In such situations, the company remains responsible for protecting this data. If these vendors experience a breach, the company that transferred the data to them is responsible to provide notice to the affected individuals. Cyber Liability will provide coverage for the organization, regardless of who caused the breach or where the data resided at the time of the breach.
- Fraud: After gaining access to your valuable information, hackers can threaten to steal or extort data, encrypt a company’s entire network, or create other mayhem if a ransom is not paid. Cyber Liability can pay for the cost of the ransom to end the threat.
As always, reach out to Holmes Murphy to learn more about Cyber Liability and making it part of your risk management program! We’re here to help protect everything you’ve worked so hard for.