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Because no two businesses are the same we begin with a period of assessment and discussion to see what your requirements are and the expectations you have.…
Listed in: Training & Personal Development
31st Jul 2015 / 4:31pm
In the Internet-dominated business arena, companies store more sensitive information than ever on their computers. But a shockingly low number of small businesses have invested in cyber liability insurance to combat the potentially devastating effects of a cyber-attack.
In fact, many small business owners are unaware of the high risk of data breaches at their establishment, in the belief that hackers are likely to attack only high-profile, high-revenue firms. Although such breaches obviously occur, they do so significantly less frequently than among small businesses.
Regardless of a company’s size or industry, business owners must take action to secure their customers’ valuable data against the possibility of a cyber-attack. In addition, investing in cyber liability insurance protects your assets should such an event occur.
The high costs of data breach recovery
When criminals get access to company databases, they become privy to a vast array of information, including customers’ Social Security numbers, credit card numbers, addresses and other identifying data.
They also gain access to sensitive business data, which they can use to open and access accounts, drain money and destroy the affected individuals’ credit. Recovering from a business data breach can cost companies thousands of dollars in fines and lost reputation.
Though cyber-attacks can have these and other grim consequences for your company, cyber liability insurance provides valuable resources to help regain what your business may have lost.
Cyber insurance and how it can support your business
“For small businesses, nothing is more important than protecting their livelihood,” says BankingSense.com editor Natalie Cooper. “Cyber liability insurance is another tool they can use to prevent financial disaster in the event of a malicious attack.”
Like other types of coverage, cyber liability insurance covers policyholders in the event of a specified loss – in this case, a cyber-attack. As business owners work to recover information and resources from a data breach, the insurance covers expenses such as credit monitoring for affected customers, lost revenue, crisis and reputation management, customer notification and investigation of the attack.
Policies are available at prices any size of business can afford, from small start-ups to multinational corporations. Representing a small percentage of a company’s annual insurance costs, this product comes at a low premium in comparison to the potential repercussions of a data breach.
Including cyber insurance as part of an overall security strategy
Regardless of the size, age, industry or number of customers your company possesses, investing in cyber liability insurance may be crucial if you store sensitive data online. However, you should also recognize that insurance will not prevent a data breach from occurring.
To protect themselves most effectively from cyber-attacks and their devastating consequences, companies must incorporate cyber insurance into an overall security strategy that includes substantial security safeguards and a decisive incident response plan.
Although the rise of e-commerce and virtual data storage means limitless opportunities and convenience for businesses of all sizes, the threat of data breaches requires companies to use every tool at their disposal to protect their data and livelihood.
Because it covers expenses should the worst occur, cyber liability insurance is a necessity in any business security plan.
Does your company’s data breach response plan include cyber liability insurance? If you wish to discuss this valuable protection for your business feel free to give me a call on 01903 875421 or 07730 317877.