We live in a chaotic world. Natural disasters, data breaches and other events that previously occurred only once in a blue moon are now common enough to demand risk prevention planning from businesses. This new norm requires successful leaders to protect their companies from unforeseen perils. For example, cyber liability insurance is a critical element in protecting any U.S. business from the dangers of the digital world.
Defining Cyber Liability Insurance
Cyber liability insurance protects companies against loss of data and intellectual property; security breaches (for internal and client files); privacy violations; virus infection; media slander or libel; business interruption; and crisis management. To give some idea of costs, about $1,000 of cyber liability insurance will provide protection up to $500,000.
The Importance of Cyber Liability Insurance
Why should you ask your IT consultant about getting cyber liability insurance? Because otherwise, one security breach could bankrupt your company. The Ponemon Institute, a research group dedicated to information security concerns, has found that, on average, a data breach costs a U.S. business $6.7 million. From litigation to government fines to lost business, a single case of data infringement can bring any number of costs.
Another Symantec survey found that cyber attacks result in an average of $470,000 in lost revenue for companies. Furthermore, if a client’s files are put at risk, your firm could be sued for damages. Any company with valuable data assets needs cyber liability insurance. Basically, if you operate a website, store clients’ or customers’ information, or rely on system performance for business operation, you need cyber liability insurance.
Cyber Liability Insurance & IT Consultants
IT consultants have the experience and expertise needed to help you choose the best cyber protection for your company. Because he or she works in many different industries and companies, an IT consultant will be well versed in the biggest threats facing your firm and which types of cyber insurance will best protect you from these hazards. In general, cyber liability insurance is a fairly new phenomenon and therefore not an area that general business consultants understand well. IT consultants, on the other hand, are experts in modern digital risks and can help you find coverage to protect you against the unthinkable.