Protecting Your Business from Cyber Attacks

Cyber risks continue to grow year after year. As businesses work remotely, cyber attackers have more opportunities to steal your company’s data.

 The frequency of cyber-attacks and the value of what thieves steal are also increasing. In 2020, the average data breach amounted to about $3.86 million. In 2021, the average was $4.24 million. 

 Although some business owners’ insurance might cover certain cyber liability risks, many businesses learn that standard property and liability insurance will not cover all cyber liability. In the event of a cyber-attack, the proper cyber insurance could save your business’s future.

 To ensure your business is protected, a separate cyber liability policy should include the following: 

  • Loss or corruption of data
  • Business interruption
  • Multiple types of liability
  • Identity theft
  • Cyber extortion
  • Reputation recovery

 On top of owning a cyber liability policy, it is best to reduce the risk of a cyber-attack altogether using these tactics:

  • Installing, maintaining, and updating security software and hardware
  • Contracting with an IT security services vendor
  • Using cloud computing services
  • Developing, following, and publicly posting a data privacy policy
  • Regularly backing up data at a secure offsite location

 Using these tactics will reduce your business’s cyber liability risk, and owning a separate cyber liability insurance policy will give you peace of mind knowing you are protected if an attack occurs.

 Source: Insurance Information Institute