If you do business online, your important data is at risk. If you store information on the cloud, that information isn’t necessarily safe. The internet is an incredibly valuable tool for most businesses.
However, using it means that a number of costly security issues can arise. Because of the looming threat of potential security issues, many businesses are turning to cyber insurance, a type of insurance that provides them with the proper financial resources to recover from a web security mishap.
If you’re a business owner, you may be wondering whether or not you should invest in cyber insurance. Before you decide whether or not to invest in this type of insurance, you should know exactly what it covers.
Here are five things most cyber insurance policies will help you protect:
1. Your Data
The property insurance or business owner’s policy you already have covers you if something happens to the hardware of your computers and you need to replace them. However, it probably doesn’t cover you if something happens to the data on your computers.
Cyber insurance helps you recover from losing data, whether it’s data stored on the cloud, your computers, or anywhere electronically.
2. Your Customers’ Data
When criminals get a hold of your customers’ private data, it can cost you a whole lot of money. Your IT staff will have to dedicate company time to fixing the security issue. And then you may have to pay for credit protection memberships for affected customers.
Additionally, you’ll probably lose customers because of fears of another security breach, and some of your customers may even sue you. Cyber insurance helps you avoid financial ruin when your customers’ data is stolen.
3. Your Intellectual Property
If you discover that someone’s taking what you post on your website and social media profiles and using it as their own, cyber insurance will help provide the financial help you need to go after them. Since intellectual property theft is a pervasive problem online, this particular area of coverage can definitely come in handy.
4. Your Reputation
Cyber insurance also protects you in cases of online slander and libel. So, if someone tweets something terrible that isn’t true about your business, you can use your cyber insurance policy to set the record straight.
This type of insurance also protects your reputation in the aftermath of a security breach. If your customers’ data gets stolen, cyber insurance will provide you with the funds necessary to hire PR staff to help your company regain consumer trust.
5. Your Website
If someone hacks into your website and destroys it, you’re covered by cyber insurance. And if your website goes down for some technical reason, cyber insurance will help you recover from any and all losses.
If you run an online business, your website is your most important asset. So, having insurance to protect your website almost certainly makes sense for you.
Cyber insurance can be a major financial investment. However, if you think you need coverage when it comes to your data, your customers’ data, your intellectual property, your reputation, and your website, this type of insurance can be an undeniably justifiable expense.
About the Author: A small business owner herself, freelancer Carol Wilson believes that entrepreneurs and small business owners should know about the proper types of business insurance available to help their projects grow. She encourages your feedback at wilson.carol24[at]gmail[dot]com.