Cyber risk is a growing issue for nearly every business, no matter the size, specialty, or industry. It’s nearly impossible to operate a business without using a computer, electronic device, software program, or electronic data these days. Which means almost every business faces a cyber risk or potential cyber attack.
What does a cyber risk or cyber attack look like?
- An unauthorized person gaining access to confidential/ sensitive business or client information.
- An intentional attack on a computer or network with malicious intent.
The Cyber Risks Facing Your Business
When a major corporation or the government is the victim of a cyber attack, it becomes front-page news. What you don’t typically read about online or in the paper are the cyber attacks and data breaches happening to small and mid-size companies every single day.
Assuming your business is safe from cyber criminals or data breaches because you’re not one of the “big guys” is a major misconception that could have you and your business headed straight for serious trouble. Small and mid-size businesses often lack the resources to put up adequate protections against cyber attacks and data breaches, making them an attractive target for cyber criminals.
Imagine if your office was broken into and the computers were taken. Or an employee took their laptop home for the weekend and it was stolen. All of your proprietary business data could be in the wrong hands, including personal client or employee information.
In many cases, a data breach isn’t the result of lost or stolen equipment, either. It can also be the result of a targeted attack on your company’s computers or network.
Malware is a broad term that covers many different forms of malicious software programs that can be used to steal data, modify systems, gather log-in credentials, and more. These are true cyber attacks that are meant to steal the sensitive information your business has access to.
What Does Cyber Liability Insurance Cover?
Cyber insurance is designed to help your business recover in the event of a data breach or cyber attack. If your business is the victim of a cyber attack, system and data recovery could lead to lost income and mounting recovery costs.
Failing to protect third-party information, such as your clients’ personal information, can also result in expensive litigation. Cyber liability insurance helps cover the costs associated with recovering data, restoring computers, and the expenses involved in third-party notification, monitoring, lawsuits, and PR nightmares.