One of the most important types of insurance that you can get for your company is cyber attack or cyber security insurance, because it can help you avoid financial penalties in the event of a cyber attack. Cyber attack insurance can consist of financial protection from a data breach or a network shutdown. Listed below are two reasons to purchase cyber attack insurance for your business.
Deal With Penalties Associated With A Data Breach
One of the biggest reasons to get cyber security insurance is to protect your business from a data breach. When a data breach occurs, your customers' financial and personal data can be used by criminals to steal your customers' identities and access your their accounts.
If this happens, you could easily end up facing a large number of hefty fines from the government if it is discovered that the data breach occurred due to lax security standards on your part. In that situation, your insurance company can help pay for those fees or for an investigation to be conducted that can prove that negligence or poor security on your part was not the cause for the breach.
In addition, cyber security insurance is necessary to keep your company from potentially going bankrupt in the event of a date breach. If the hacker were to use your customers' data to make purchases or steal their money, you can be held liable for the losses. In addition, your customers can also sue you for allowing the breach to happen and for any damage that their credit may have sustained as a result of identity theft.
Compensate You For Lost Income
Another reason to have a cyber attack insurance policy is that it can compensate you for any lost income as a result of the attack. This is vital because it is possible for a hacker to hijack your systems or network remotely with ransomware until you pay him or her to restore access or to completely bring down your company's e-commerce site. In those situations, you could end up facing enough downtime that you end up losing quite a bit of money, particularly if the downtime ends up lasting several days or weeks.
Contact an insurance company like IT Risk Managers in order to discuss how a business cyber attack policy can benefit you. This type of insurance can help you deal with the penalties that can arise from a data breach while also compensating you for any income that you lost as a result of a cyber attack.