Demystifying Management Liability with Cyber Risk Coverage
With the increasing popularity of the Internet and demand for online mobility for both businesses and consumers, it is both a responsible and smart move to have Cyber Risk Insurance to protect your business. Travelershighlights the importance of this in their short video, but we want to emphasize the reasons why Cyber Risk Insurance is critical for businesses who use online methods to conduct business.
The Internet’s popularity has increased and has made it almost impossible for people to live their everyday lives without using it. Everyone who uses the Internet immediately becomes vulnerable to hackers if they are not protected. The video mentions that data breaches and hacks have increased more than 60%, and it is not questionable whether or not your business will be susceptible to an attack – it can happen to anyone at any time. There is no guarantee an outside source won’t access your company’s and clients’ confidential information, especially in this digitally dominant world. Let’s examine the consequences of a hacker obtaining confidential information:
Reputation
Your reputation could be damaged quicker than it took the hacker to get into your system in the first place. Bigger companies are usually found in the spotlight and on the first page of newspapers before smaller ones, but the size of your company doesn’t matter in this case. Your reputation will be affected when your clients become aware that your information and theirs is not protected and has been obtained by an outside source.
Financial implications
Your clients also have the ability to sue you and take the case to court. The costs will add up quickly and burden your company financially. Your money is better spent on insurance rather than worrying about the costs of being in front of a judge. Not having Cyber Risk Insurance can guarantee that your company will have a bad reputation and financial issues paired with employees who may be faced with the question of what comes next for them.
Broken trust
There is no doubt your clients are going to feel they can’t trust you after their confidential information is obtained by hackers. We think it’s safe to say they will take their business to another company that they know they can trust. Other companies can also use your vulnerability to their advantage in reporting on your situation and reaffirming their clients (and new ones) that this would never happen with them. Companies who are protected by Cyber Risk Insurance can promote this in saying that they and their clients are protected. You could lose much more than trust if conducting your business without online security.
There are ways to minimize the impact of the breach and that is with a custom Cyber Risk Insurance plan. Contact Coast General Insurance Brokersto find the right coverage to protect your business and keep your clients as well as their information in safe hands.