Why Cyber Liability Insurance?

Why Cyber Liability Insurance?

October 17, 2022
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You might have asked yourself why you even need cyber insurance. Most companies might feel this type of coverage should sit on the back burner. While that makes sense because you want to save money and have other things to do, you cannot ignore the online/electronic threats that you face. Take a look at what cyber liability insurance covers and learn today how it can safeguard your livelihood and legacy. 

Who Needs Cyber Liability Insurance? 

Everyone needs cyber insurance. There’s no ifs, ands, or buts about it. Your business needs cyber liability insurance because every company has some form of an online presence. Plus, you use: 

  • Email
  • Wi-Fi
  • Online marketplaces
  • Mobile devices
  • Third-party software

Each and every one of these items can bring threats to your doorstep and you won’t even know it. As a result, you require cyber liability insurance that will help protect your business when you are surprised by a hacking attack. 

What Does Cyber Liability Insurance Cover? 

Your cyber liability insurance policy will cover a range of threats or attacks, including: 

  • Data breaches
  • Intellectual property rights
  • Extortion
  • System damage
  • Third-party damages
  • Phishing losses
  • Legal defense, settlements, judgments, and fines
  • Cyber-attack response and notifications
  • A forensic investigation
  • Business interruptions

Remember, every policy is different, and we can help you build a policy that makes the most sense for your business. Moreover, you must understand what cyber liability insurance will not cover, including: 

  • General Liability
  • Professional liability
  • Employment practices
  • Commercial property
  • Business Owner’s Policy
  • Commercial auto

These are separate policies that our team can build for you, but you should not overlook them when safeguarding your business

Cyber Claims Are Cheaper Than Lawsuits 

Filing a claim against your cyber liability policy is far cheaper than paying out-of-pocket for a lawsuit. Remember, your business is at risk when it can be accessed online. You may not realize how vulnerable you but avoiding a few premiums will be the least of your concerns if you don’t have coverage and you are sued because you lost sensitive consumer or proprietary data. 

Plus, you will pay out-of-pocket for the recovery, lose income, and not know how to secure your financial future or maintain cash flow. The loss of intellectual property alone could set your business back years and years. Damage to a third party’s systems could leave you indebted to another business for the foreseeable future, and systems lost to natural disasters must be replaced at some point. 

Most business owners don’t have cash in the bank for a complete “reboot” of the business. 

Contact Buren Insurance Group for More Information on Cyber Liability Insurance 

Reach out to our team at Buren Insurance Group for help with the cyber liability policies you might carry or wish to purchase. Most people do not realize that they need this sort of insurance, but a cyber-attack could happen at any time. We want to be there to help you find better coverage, protect your business, and recover when a worst-case scenario occurs.