Data breaches, ransomware attacks, and other cyber crimes are becoming more and more common, and they can affect businesses of all sizes. Cyber insurance can help protect your business in the event that your data is compromised or your computer systems are damaged.
More than 55% of small businesses have experienced a data breach, and the financial consequences of a cyber-attack can be massive. Cyber insurance can help cover the costs of investigating and responding to a data breach, as well as the costs of restoring damaged computer systems. It can also help cover the costs of legal fees and damages if your business is sued as a result of a cyber incident.
When shopping for cyber insurance, be sure to ask about coverage for:
- Data breaches
- Ransomware attacks
- Phishing scams
- Denial of service attacks
- Computer system damage
- Business interruption
In the event of a cyberattack or data breach, it’s important to have an incident response plan in place. This should include notifying customers, assessing the damage, and taking steps to prevent future attacks. Cyber insurance can even help cover the costs associated with implementing an incident response plan.
In 2021, the average cost of a data breach was $3.86 million, and the average cost of a ransomware attack was $133,000. If your business is the victim of either of these crimes, cyber insurance can help cover the costs of investigating and responding to the incident. Cyber insurance can also help cover the costs of restoring damaged computer systems and the cost of legal fees if your business is sued as a result of a cyber incident.
Cyber insurance is not required by law, but it is becoming increasingly important for businesses to have in order to protect themselves from the growing threat of cybercrime.
If you’re considering purchasing insurance for your business, be sure to shop around and compare policies to find one that best fits your needs. The CTG team can help you work with your insurance provider to determine the types and amounts of coverage that would be appropriate.