What Are the Benefits of Cyber Insurance?

What Are the Benefits of Cyber Insurance?

From protecting yourself from extortion to informing your customers tout de suite, here are four answers to the question, "What are the major benefits of cyber insurance?"

  • Defending Against Cyber Extortion
  • Covering Lost Income
  • Protecting You from Cyber Crime Damages
  • Ensuring that the Damage is Communicated

Defending Against Cyber Extortion

In this day and age, businesses often offer their employees company devices, such as laptops or phones. The issue that may arise is that the device may get lost or stolen, which, in turn, puts the company at risk. Should someone not associated with the company gain access to important data, cyber insurance can help tremendously in case of, for instance, cyber extortion.

Natalia BrzezinskaNatalia Brzezinska
Marketing and Outreach Manager, PhotoAiD

Covering Lost Income

If your company experiences a cyberattack, you could lose a week or more of your income. Small businesses rarely operate on a cushion of savings, so this loss of income could make it impossible to pay invoices, make loan payments, or cover utilities.

Cyber insurance can help you recover by compensating your business for the income it lost during a ransomware attack or another breach.

If you have employees, your cyber insurance can even provide coverage for their wages. Without this benefit, you could lose your employees and have to start over training new recruits.

Michelle RobbinsMichelle Robbins
Licensed Insurance Agent, Clearsurance.com

Protecting You from Cyber Crime Damages

One benefit of cyber insurance is protection in the event that your data is compromised. If your personal information falls into the wrong hands, it could put you at significant risk of financial disadvantage. Having appropriate coverage can safeguard you from this and ensure that you are compensated for any damages in case of a breach.

However, it's important to note that the coverage provided by cyber insurance policies can vary widely, so make sure you read the terms and conditions carefully before purchasing a policy. By doing so, you can ensure that you have the appropriate coverage for your needs and protect yourself from the potential financial risks of cybercrime.

Lilia KossLilia Koss
Community Manager, Facialteam

Ensuring that the Damage is Communicated

Legally mandated breach and post-breach notifications are one of the biggest benefits of having cyber insurance. A cyberattack often results in chaos, and notifying clients is crucial, yet it is often delayed until the problem is at least addressed. With cyber insurance, this isn't something to worry about. Insurance covers many issues, including this one.

Marco Genaro PalmaMarco Genaro Palma
Co-Founder, TechNews180

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