In today's highly digital world, businesses have come to rely heavily on technology. However, as the technology used continues to become more complex and sophisticated, the threat of a cyber attack increases.
What is a Cyber Attack?
A cyber attack is best defined by any attempt made by a hacker to damage or destroy a computer network or system. Professional hackers are very skilled in finding vulnerabilities in systems that lack the appropriate security software and are therefore able to gain access to networks and sensitive data, which often produces devastating results for the targeted companies.
Cyber Attacks Are On the Rise
An alarming report recently released by internet security teams at Symantec and Verizon indicated a 40 percent increase of cyber attacks and data breaches over the previous year. Even more astonishing is that nearly 1 million new malware threats are released each day. This makes it incredibly challenging for companies to protect themselves from hackers.
It's not just large organizations such as banks and insurance companies that are being targeted by hackers. Nearly one-third of the cyber attacks that occur happen to companies with less than 250 employees. This is often because small business owners typically don't have the sophisticated cyber defense resources to protect their customers' data.
Unfortunately, when small businesses experience a cyber attack, they are also less likely to be able to absorb the financial impact of this crime. This is where cyber liability insurance can come in handy.
How Can Cyber Liability Insurance Help Your Business?
The goal of cyber liability insurance is to help your company deal with any of the negative ramifications that can come from having an online presence. This could include safeguards against viruses or even liability for web content such as a defamatory blog post that could be damaging to your business's reputation.
At the very minimum, you'll want to make sure your cyber liability insurance offers coverage for the most common cyber attacks, such as loss or theft of sensitive information, data corruption, and the loss of income that can come from such an attack. You'll also ideally want coverage to protect yourself from any judgements or settlements that could occur from a customer bringing a claim against you due to a data breach.
In summary, with cyber attacks on the rise, you really can't afford to ignore the huge liability that this presents to your business.
To learn more about cyber liability insurance and what the best coverage for your business should be, please contact us at Summerlin-Roberts. We offer creative, personalized, and effective solutions to best meet the needs of your business while also keeping in mind your budget.