Skip to main content

Why Your Business Needs Cyber Liability Insurance

With the continued increase in the use of technology for businesses, many former day-to-day processes and communications have been streamlined and digitized. While this a benefit for businesses, it is important to understand the risks of security breaches when converting important business files into digital formats. Here, the specialized insurance experts at MedChi Insurance Agency discuss cyber liability insurance, how to protect your business from potentially detrimental data breaches and the importance of taking additional security measures to ensure that your business remains digitally secure.  

What Is Cyber Liability Insurance?

Cyber liability insurance protects your business from the costs associated with a data breach. MedChi Insurance Agency will guide you through the process of evaluating the data liability risks your business faces and find a policy that meets your specific needs. Considering that data breaches exposed 4.1 billion records in the first six months of 2019, it is vital for businesses to consider the risks associated with not having their business covered under a cyber liability insurance plan. Personal information on employees or customers, confidential business data and even company finances can be accessed through these data breaches, and if not properly covered, your business will be responsible for handling the repercussions. While it is common to only hear about data breaches from large companies, it is important to note that these breaches can happen to businesses of any size. As of 2019, data breaches are considered among the top five risks in global stability. Regardless of your company size, your business may be unknowingly exposing personal documents to potential hackers.

What are the Different Types of Data Breaches?

When researching the impact of data breaches, it is important to note that there are various forms of breaches that can occur, including ransomware, malware and phishing. Ransomware is a software that locks down access to important business data, while malware disrupts your operating system, harming your computers and files. Phishing is a common way that hackers access data, by sending fraudulent emails pretending to be from a reputable source, in hopes that the user will download attachments used to steal company information. For both large and small businesses, these data breaches can have a huge financial and personal impact. In 2018, the average cost per lost or stolen record was $148, and multiplying that number by dozens or hundreds of these files can prove to be a severe financial burden for small businesses.

How Can My Business Be Affected?

Besides financial loss, the impacts of a data breach can be detrimental to businesses, leading to years of hardship and frustration. Many small businesses believe that they are too small to be a target, providing opportunities for hackers to exploit them when they are unprepared. Without proper preparation, your business may face fines, legal investigations and an increased cost for future security measures. Outside of the financial aspect, data breaches break the trust between employees, as well as between your business and customers. If your employees are aware that you did not take the proper precautions of obtaining cyber liability insurance, the trust they have that they will not face future personal harm is diminished.

How MedChi Insurance Agency Can Help Protect Your Business

While the process of obtaining cyber liability insurance may seem complex, it is important to seek professional help to ensure that your business is kept safe. Whether you are a company with 10 employees, or 1,000 employees, knowing that you are covered in the event of a data breach will bring comfort to your entire business. MedChi Insurance Agency seeks to help give you peace of mind and bring to light areas of your digital security that may be a target for hackers. To learn more about how the qualified insurance professionals at MedChi Insurance Agency can help you navigate the complex area of cyber liability insurance, contact our office today.