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What is Cyber Liability Insurance & Why You Need It

If you don’t use the Internet AT ALL for your business…… then you can skip this article. 

Seriously, is it even possible to run a business without a presence online? Not having a website today is like not having a phone book ad twenty years ago…unheard of. But along with this presence comes some additional risks that are downright scary.

If you have a website, handle customer or employee information, or use a third party host to store your website or data in the cloud, you need Cyber Liability Insurance.

If you store information of any kind or run your business through the web, the damage that skilled hackers could wreak on your livelihood is significant. Not only could your website, and potentially the ability to run your business, be shut down, but sensitive information such as customer credit card information and employee social security numbers could be compromised. And your business is likely still liable, even if you hire a hosting company to manage your site.

This scenario is damaging and expensive. Potential costs include notification fees, legal defense, settlements, and lost business. Dealing with a cyber attack could reach into the millions and that cost may be small compared to the loss of customers’ trust and the good reputation of your organization.

This scenario is all too real but it doesn’t have to be the end of the story. While you may not be able to stop the hack, Cyber Liability Insurance can protect your business from the fallout.

Cyber Liability Insurance Coverage can benefit your business in several incredibly important ways:

  • Cyber Liability Coverage Fills a Gap

Many general liability insurance policies specifically exclude Internet losses, leaving a gap in protection that makes a business vulnerable. Cyber Liability Insurance fills this gap to provide a more seamless business protection plan.

  • Cyber Liability Coverage is Scalable

Just as with other policies, it’s important to choose the proper amount and type of Cyber Liability Coverage for your business. Our carriers offer policies designed for small and large businesses, as well as those with differing exposure, such as public entities or technology companies.

  • Cyber Liability Coverage Includes Expertise

It is in the insurers interest to offer support to businesses PRIOR to cyberattack. Our carriers offer a variety of resources to help businesses manage their presence on the Internet and train employees to lessen the likelihood of cyber attack.

Not only does this expertise help avoid an attack in the first place, but it is also comforting to know that you have experts in your corner to walk you through every step of the way if your company is attacked. It might be YOUR first cyber attack, but it isn’t ours.

  • Cyber Liability Coverage is Affordable

Especially when compared to the high cost of recovering from a hack, the premiums and coverage our Cyber Liability carriers provide are more reasonable than you might think. And the best part is that sitting down with a Compass Insurance Partners agent to discuss your options is absolutely free.

While it is tempting to shut down your web presence and go back to the phone book when confronted with these alarming risks, avoiding technology in your business (and the risks associated with it) is nearly impossible. The Internet is here to stay. But you don’t have to bear the risk on your own. Cyber Liability Insurance can fill the gap and make using all the benefits of technology feel a lot safer.

Photo licensed Adobe Stock