Having a digital storage system can be a secure and convenient system for most businesses. Unfortunately, cybercriminals have tried and succeeded to exploit vulnerabilities in company systems, resulting in data theft and identity theft.
After a cyberattack, clients, employees, and others affected by the cyberattack may file a claim against the company. Having cyber security insurance can protect businesses.
The Impact of a Cyberattack
After a cyberattack, a company’s reputation may suffer serious damage. Those who had information stored on the system could have their identities or financial information stolen. Companies may also face fines due to privacy regulations.
How Insurance Protects Business
A comprehensive cyber liability policy can cover expenses and defense costs following an attack. After an attack, you may have to close the business for a short time. Some attacks require network fixes. During this time, businesses can lose income. Cyber liability pays for those losses. If cybercriminals access personal, financial, or other information from clients or employees, they may file a lawsuit against the business.
A company may need to pay to restore a company image, to restore a client’s identity, or pay for the legal fees associated with a lawsuit. All businesses require insurance policies to protect against a variety of claims. In the digital age, a cyber policy is critical.