Without commercial cyber insurance, you can expect to pay out of pocket. A policy can pay a large chunk of that money in the event of a cyber hack or data breach. If you’re considering the idea of investing in cyber insurance, you may be on the fence.
You could be wondering if you’re ever going to use this insurance policy and that a data breach or cyber attack will never happen to your company. But in fact, cyber attacks can and do happen to companies of all sizes and in every industry, and it’s one of the best investments you could make. Here are four ways that cyber insurance can protect your company.
1. Notification Services
The biggest reason to purchase commercial cyber security insurance is the notifications you’ll receive before threats happen. It can notify you about potential risks and possible breaches. In this case, the insurer will refer you to a reputable law team that will reimburse any costs incurred. You will also get breached and counseled along the way. Your insurer will also be knowledgeable of state laws, in the event that any of your customers’ sensitive information is compromised.
2. Recovers Lost Data
Organizations must be responsible for personal data, no matter if it’s stored on a server or the cloud. You are held responsible for any data that gets lost during a data breach. Your insurer will advise you on the best way to store your private information.
They will also create a document retention procedure to ensure you don’t keep data that you don’t need. A cyber security policy covers breach notifications, lost data, and remediation expenses.
3. Finds Lost Devices
In the workforce, it’s imperative that you have your mobile phones and laptops with you at all times. All it takes is a few quick seconds and they’re gone. In the event that your mobile devices are stolen or lost, your business has to take the appropriate steps to limit the amount of confidential data on each device. This means changing passwords or using encrypted data.
In the event of a breach, your insurer will offer protection for lost devices. This can make up for the significant cost of a work laptop. It’ll also include the legal costs that you’ll need for the investigation and additional expenses.
4. Better Savings
Improved security means better savings. Without cyber insurance, you’re putting your company at risk of a potential data breach. Many organizations such as yours are investing in it. This can prevent you from making a costly mistake in the future, especially as cyber-attacks are on the rise. In 2023, the average cost of a global data breach was close to $4.5 million. Most of those costs are associated with detecting and resolving the breach.
You learned the four major reasons why you should invest in commercial cyber insurance. This will give you greater peace of mind. You’ll be aware of possible threats so you can avoid disruptions to your business and financial loss.