Why Your Business Needs Insurance Against Cyber Attacks and Data Breaches

June 19th, 2019 by admin

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No matter how much protection you have for your systems or the kind of precautionary measures you take for threat prevention, cyber breaches and attacks still happen and can significantly impact your company's operations. Regardless of the type of business you have, industries of all kinds need to be prepared to deal with the aftermath of an attack or breach. A cyber event can be extremely costly, and result in your business having limited resources to continue operations. Cyber insurance plays a crucial role in keeping your business afloat in the event of an attack or breach.

Cyber insurance, or cyber liability insurance, provides coverage to protect your business in the event of an attack by alleviating the risks and devastating effects that cybercrime can incur on a company. Cyberattacks damage more than just your resources; sensitive information like credit card and social security numbers, addresses, names, and more are put at risk and can ruin your company's reputation for good. Many think their general liability or business insurance policies include coverage for cyberattacks. This is rarely the case as "cyber coverages" are generally excluded from these sorts of plans. Unlike home and auto insurance, where almost all insurance carriers provide the same coverages, there is no industry standard regarding coverages required by the department of insurance for cyber policies. Because of this, to protect your business from lawsuits and claims that may arise as a result of a privacy breach or cyberattack, it is crucial your cyber liability insurance policy cover the costs associated with credit monitoring for individuals whose information is compromised, damage to electronic equipment and computer systems, and the cost to repair, replace, restore and/or recreate compromised or leaked data.

Who needs cyber insurance? While businesses of all sizes benefit tremendously from having some form of cyber insurance, small to midsized businesses (SMBs) particularly benefit due to the increased risks and vulnerabilities SMBs have. Over 70% of cybercrimes are targeted at smaller companies due to their usual lack of preparedness against cybercrimes, many fail to recover when an attack strikes. Of the small companies that suffered a cyberattack in 2017, 60% of those without cyber insurance were out of business within 6 months. While it is vital to have good security and prevention measures for your business, insurance can further increase the chances of recovery from an actual attack.

As a client of Parker Data & Voice, you now have the ability to secure discounted cyber liability insurance with our trusted partner, techrug (The Technology Risk Underwriting Group). Through our relationship with techrug, you’re able to access their CyberBreach Insurance policy, underwritten by Lloyds of London. This is a one-of-a-kind solution designed to protect your business from cyber threats and the potential claims and lawsuits that result. This policy also includes Cyber Crime insurance to protect against unauthorized transactions as well as cyber deception, social engineering and phishing scams. This insurance will be a significant element to your disaster recovery and business continuity contingency plans.

Learn more about ways we keep our clients safe and secure with our industry-leading IT and cybersecurity solutions.

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