The Advantages of Cyber Liability Insurance

November 22, 2021

When you think about the most pressing liabilities, you might not think of those that lie within your company’s computer systems. It is, unfortunately true, though, that cyber liability is becoming an increasingly common concern. This is due in large part to the staggering increase in cyberattacks targeted at small businesses and organizations. Cybercriminals are on a vicious hunt for sensitive information that they can weaponize and monetize. If you host any information about clients on your system, you’re a potential victim. Read on to learn why cyber liability insurance is important and how it can protect your company from an IT disaster.

Minimize Losses from Business Interruption
What are the benefits of cyber insurance? For businesses that have suffered a cyber breach, the losses can be monumental. Much of the potential loss stems from the business interruption that often follows a cyber-attack. Cyber-attacks are difficult to recover from, and the aftermath often derails companies for days, if not weeks. During this time, your company’s income flow is likely to be substantially reduced if not eliminated. However, a cyber insurance policy can help to cover the costs of lost business as your company recovers from an online attack.

Avoid Falling Prey to Cyber Extortion
One of the most common ways that cybercriminals wreak havoc is through online extortion attempts. This is often done through ransomware that may be able to seize control of your computer and demand payment of a fee to enable removal. Unfortunately, payment of the fee isn’t a reliable way to resolve the problem, but many desperate victims still fall prey to this tactic. Some cyber security policies cover losses that occur as a result of extortion attempts.

Replace Compromised Digital Assets
In some cases, a cyber-attack may involve the alteration or theft of a digital asset. Company documents that contain sensitive information, for example, can be seized by a cybercriminal who intends to exploit its data. If a digital asset like this is corrupted in a cyberattack, the cost of restoring or replacing it may be covered by a cyber security insurance policy. This is particularly beneficial to companies that keep sensitive documents in the cloud. It’s vital to encrypt all important data so that cybercriminals cannot access it so easily.

Enjoy the Security of Cyber Support
Many cyber security insurance policies also offer some form of support to insureds to help prevent any incident of cybercrime. These support resources vary based on your insurer and policy type. Still, it can be a great resource for companies seeking an additional layer of vigilance to protect their online assets. If your policy does not come with a support resource, seek out training for cybercrime awareness.

About Brooks, Todd & McNeil
Since 1839, the independent agents at Brooks, Todd & McNeil have been pleased to offer our community the best and most affordable policies from a variety of providers. Our dedicated facilitators are ready to put their 75 years of combined experience to work on your claims. To learn more about our products and services, contact us today at (800) 448-4567.