With reports of cyber criminals increasingly focusing on smaller companies for targeted attacks, businesses that store sensitive data need to consider how they protect their information systems now more than ever.
While you can install firewalls and take other precautionary measures, should an attack occur, you’ll be left facing untold costs, possible fines, and lawsuits by those whose data may have been exposed.
One way to protect your company is by securing a cyber liability policy.
But what does a cyber policy cover and why should you get one? You may think an attack will never target your firm, but if it does and you’re without insurance coverage, you may regret not acting sooner.
Below are the top 10 reasons to consider buying a cyber liability policy:
1. Data is a very valuable asset
Your data is almost certainly worth many times more than the physical equipment that stores it.
Yet most business owners do not realize that a standard property policy would not respond if this data is damaged or destroyed. A cyber policy can provide comprehensive coverage for data restoration and rectification in the event of a loss—no matter the cause—up to the full policy limits.
2. Systems downtime is not covered by a business interruption policy
If a cyberattack, computer virus, or malicious employee brings down your point-of-sale software or other crucial systems, a traditional business interruption policy won’t help.
Cyber insurance can provide coverage for profit loss due to a system outage caused by a computer virus or denial-of-service (DoS) attack.
3. Cyber crime is the fastest-growing type of crime
Thanks to the internet, your business is exposed to global threats 24/7.
Phishing scams, ransomware, identity theft, and phone hacking are all threats that traditional policies do not cover. Cyber insurance offers protection against a broad range of electronic perils that can threaten your financial health.
4. Your company can be held liable if it loses third-party information
Non-disclosure agreements and contracts often include data security warranties. A breach could lead to expensive damages claims.
Customers may also sue if their data is compromised—and regulatory fines may apply if you delay in notifying affected individuals.
A cyber liability policy can help cover these various costs.
5. Businesses face severe penalties for losing credit card data
Global credit card fraud exceeds $7.5 billion annually, and businesses that experience a breach can be held liable for:
- Forensic investigation costs
- Credit card reissuance fees
- Fraudulent charges
These expenses can quickly add up—especially for smaller businesses. Cyber insurance can help cover all of them.
6. Complying with breach notification laws costs time and money
Breach notification laws usually require you to inform individuals whose data was compromised.
Even when not legally required, customers expect transparency and accountability.
Cyber insurance can cover notification costs and related communications, helping you manage the situation professionally.
7. Your reputation is your top asset—insure it
While not all reputational risks can be insured, cyber policies can help in the aftermath of a breach.
Losing customer trust can damage your business far more than the immediate financial loss.
Cyber insurance may cover public relations support and future sales lost due to the breach.
8. Social media claims are on the rise
Employee activity on social media can lead to legal issues if something defamatory, false, or infringing is posted.
Cyber policies can cover claims related to:
- Data leaks
- Defamation
- Copyright infringement
9. Portable device loss or theft can expose your firm
A stolen laptop, misplaced smartphone, or lost USB stick can result in significant data exposure or IP theft.
Cyber insurance helps cover breach costs related to portable device loss or infection, which are increasingly common.
10. Small firms are increasingly being targeted
Cyberattacks on small businesses are growing.
According to Symantec’s “The Threat Landscape in 2024”, 31% of all attacks were aimed at firms with fewer than 250 employees.
Smaller companies often lack the financial buffer to recover from a breach. A cyber policy can provide a critical safety net.
Don’t wait until it’s too late. A cyber insurance policy could be the difference between recovery and closure for your business.
BGES Group is one of New York, New Jersey, and Connecticut’s Construction Insurance Specialists representing 50+ companies, including all the BEST general & umbrella liability programs. We offer all the coverage needed, including property, builders’ risk, inland marine, general liability, umbrella liability, auto, bid & performance bonds, workers’ compensation, N.Y.S. disability, and group health. Our commitment to you goes beyond the policies we provide. We are always just a call, text, or email away, ready to assist you, even on weekends. We understand the importance of your business and are here to help you navigate any insurance challenges.
BGES Group are Workers’ Compensation Insurance Specialists for Tri-State Business Owners: Unhappy with your rates, company, being canceled, losses causing difficulty getting coverage, in the middle of an audit dispute, misclassified payrolls, or whatever your issue. We can help! We have special programs for Auto Services, Contractors (especially in New York), Limousine Services, Logistics Companies, Manufacturers, Recyclers, and Truckers; we can help ANY tri-state business owner. We are considered “Preferred Agents” for this one program that, if we can get you into, their pricing is excellent, offers long-term coverage stability, and can cover multi-state operations. The program takes the hassle out of doing annual audits, too.
If you want to speak with us, call Gary Wallach at 914-806-5853, click here to email, or visit our website.
Company: BGES Group, 216A Larchmont Acres West, Larchmont, NY 10538
email: bgesgroup@gmail.com
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