Is Your Data Protected? 3 Reasons Why You Need Cyber Attack Insurance

If you don't have your business insured against cyber attacks, you might be setting yourself up for a catastrophic event. Cyber attacks don't just happen to large corporations. They happen to small mom-and-pop enterprises, as well. In fact, virtually any business that utilizes the internet is in danger of falling victim to a cyber attack. If that happens, the effects could be devastating, especially if you're not insured. Here are three things you need to know about cyber attacks.

Cyber Attacks Don't Always Come from the Outside

When it comes to cyber attacks, the threats don't always come from the outside. In fact, studies show that 55% of all cyber attacks are the work of company insiders – whether it's someone with an ax to grind or someone who inadvertently becomes a threat. If you're trusting your network security to your IT department, you might be inviting a cyber attack – intentionally or otherwise. To provide maximum protection for your business data, upper management should be responsible for its management and security.

Cyber Attack Insurance Can Be Geared to Fit Your Business

It doesn't take much to destroy a business. One well-planned cyber attack can destroy a business from the ground up. If you think your business is exempt because it's small, you should know that studies show that nearly one-third of all the cyber attacks that occurred in 2013 were against companies with less than 250 employees. Whether you have 10 employees, or 1010 employees, you need to have cyber attack insurance.

Traditional Business Insurance Don't Cover Data Losses

You might think that your traditional insurance policy will protect your business against a cyber attack. Sadly, that misinformation might leave you without coverage should your company fall victim to hackers. Your standard commercial policy will protect you against theft of material possessions such as office equipment. However, it will not protect you against a theft of data. To ensure that business data is protected from theft, you need to have cyber attack insurance. Here are just a few of the ways that your cyber attack insurance will help you out after a loss.

  • Reimbursement of costs associated with cyber attack losses
  • Protects against business interruption associated with cash flow problems after attack
  • Provides periodic reviews of your cyber security

If you own a business, you need to protect your data against cyber attacks. For more information, contact IT Risk Managers or a similar company.