In the world of business, it can often time be overwhelming when it comes to the list of things you have to do and the necessary steps it takes to be successful. Oftentimes, it can feel like you need to find a way of cutting at just one corner because of the amount that’s on your plate. If you are a start-up or an established brand, this can be a tempting thing to do. If you aren’t familiar with cyber security insurance, this might seem like you found the perfect corner to cut.
If you have a great product, awesome employees, and a great workplace environment along with a satisfied clientele, why spend money on cyber security insurance? How can this actually help drive your company’s success forward? Unfortunately, there are a lot of insurances that are considered to be vitally necessary for a business to be successful. Cyber security is one of those insurance types. If you have been wondering how cyber security insurance can help your company, and if it’s something that you actually need, here is everything you need to know.
When Do You Need Cyber Security?
In the digital age, it can be hard to understand when you need cyber security and when you don’t. For instance, everything from tech startups to local florists will use digital mediums for payment, memberships, and almost any other service regardless of how uniquely different these companies are. So when do you need cyber security, and better yet, why do you need cyber security?
When You Hold Customer Data
Let’s start out with one that’s easy to understand and fairly straightforward. When you work in the technology industry and hold any amount of customer data that could be personal or confidential, this is a pretty good indicator you need cyber security insurance. Personal data is a very precious and valuable thing, and if you run any kind of business that collects this data from your customers, you need contingencies in place. Events like being attacked by a hacker, or even losing data due to some kind of technical failure can all cause huge complications and even result in legal action being taken against you.
Things like security breaches, password leaks and much more are all a very real part of doing business in the digital age. While some businesses definitely tend to invest more into data than others, having insurance to keep your company safe is something you can’t afford to go without.
For Any Kind of Electric Commerce
What about the smaller businesses that aren’t necessarily related to the tech industry? When it comes down to it, if you take any kind of electric payment, or have any kind of database on your customers – even if it’s small and minimal, having cyber security is a good idea. The great thing about cyber security is that it is as unique as the clients that it helps to protect. This means that you can find policies that work for your size and type of company. Just because you get cyber security insurance, doesn’t by any means imply that you’ll have the same type as a large tech company. The great thing about getting cyber security insurance is that it’s possible to get unique, curtailed policies that are fitted to your exact needs at a competitive price.
What Does Cyber Security Even Cover?
This is an area of cyber security that may be confusing to some. Unlike most insurances for businesses and professionals that only focus on liability, cyber security focuses on a lot more. It acts as an insurance policy against lost funds, and the repairs need for data breaches, and can even work for compensation for damages done by hackers. In fact, while liability is something that it can cover, cyber security insurance covers a whole lot of real-world expenses before a lawsuit is even on the table.
On average, a cyber attack can cost a company more than two million dollars. For any size company, one cyber attack could mean the end of that business just due to financial damages alone. Cyber security insurance acts like a powerful tool that covers the areas of liability you need to be covered. Not only that, but a lot of cyber security insurances also come with training for companies to understand how to better fortify and protect their valued data.
Cyber security insurance often covers things like:
- Data loss and the cost of recovery and recreation
- Damages due to revenue breach
- Transfer funds lost due to breach
- Computer fraud
- Cyber extortion
Every company that does business of any kind within the digital sphere should have some kind of cyber security insurance. With flexible plans, it’s easy to find affordable, competent options for any size or type of company that may need it.