Through the use of technology to store customer data, financial records, and employee information, both large and small companies are susceptible to cyber crime and the potentially devastating costs associated with it. In an age of such vulnerability, there are three core reasons cyber liability insurance has become a vital component to any threat management strategy.
1. Widespread Risk
Since 2013, cyber attacks have increased more than 66 percent each year, and in 2015, an estimated 55 percent of all US businesses experienced a security breach. Hackers may target any company that collects valuable data, including financial, medical, and personal information, leaving nearly all companies at risk in one way or another.
2. Potential Costs
Dealing with a cyber crime often results in serious expenses, including the following:
- Victim notification
- Forensic services
- Crisis management
- Data retrieval
Without cyber liability insurance, your company may be responsible for each of these costs and more.
3. Human Element
Even the most advanced digital security measures cannot account for every circumstance. As the mobile workplace evolves and expands, lost laptops, misplaced smartphones, and compromised home computers can continue to undermine even the most advanced security systems.
The Bottom Line
With the rising tide of cyber attacks, the overwhelming expenses related to them, and the inevitability of human error, your company may be at risk for substantial loss. Cyber liability insurance is the key to safeguarding your assets and protecting both you and your customers.