Why is Cyber Insurance Coverage Important? 

With digital technology and online solutions now rooted in many businesses and industries, understanding and addressing associated risks and exposures is critical. While technological advancement has helped many companies evolve and grow, it has also created or exacerbated cyber risks. With this in mind, cyber insurance has become an integral part of many organizations’ risk management and loss control efforts.

What is Cyber Insurance?

Also known as cyber liability insurance and data breach insurance, these policies remain true to their names by helping policyholders offset risks, exposures and losses arising from cyber incidents. Coverage details can vary, but cyber insurance policies can typically help offset losses arising from many common incidents prominent in the digital era, including phishing scams and ransomware attacks.

Why is Coverage Important?

Modern-day workplaces are rife with cyber risks and exposures. Even opening a simple email or instant message can lead to costly consequences, as cyber criminals may disguise malware and other cyberattacks within these seemingly normal parts of a business’s operations.

Additionally, many businesses in industries that have previously not relied on digital technology may not be well-informed regarding cyber risks and incidents. As such, employees might be less likely to detect an attack or know how to respond promptly.

How Can My Policy Help?

With a cyber insurance policy, your organization can access critical financial assistance following cyber incidents and data breaches. Specifically, your policy might help pay for the following:

• Incident investigation costs

• Breach notification expenses

• Reputational rehabilitation (e.g., hiring a public relations firm)

• Noncompliance fines

• Business interruption losses

• Legal costs (e.g., attorney fees, settlements and judgments)

Without cyber coverage, the aforementioned losses and expenses could impose significant out-of-pocket costs that might derail your operations and jeopardize future viability.

We’re Here to Help

Contact TechFirst Insurance Agency in Queensbury, NY today to discuss cyber insurance options and find the right policy for your business.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.