Whether you run an online business or simply keep your accounting online, minimizing exposure and mitigating the breach risk to the data you store is imperative to your business health. A data breach can cost millions in extortion, lost business and legal fees.
One way to mitigate risk is through specialized insurance. Investing in cyber liability insurance has many benefits, and here are two of the most important.
1. Protection From Ransomware
The biggest risk to your organization right now is ransomware. Over half of businesses in one study said they had been targeted by ransomware, and the average ransom is approaching $200,000. The recent hack at Colonial Pipeline cost the company about $5 million in ransom.
No matter the size of your business, cyber liability insurance can help cover the cost of ransom if you choose to pay it. It can also cover the lost revenue while your business was held up and help pay to discover who initiated the attack.
2. Legal Support Following a Breach
Another potentially fatal cost of a breach is the legal obligations in its aftermath. Insurance can help pay for any required notifications and credit monitoring. If the breach leads to other legal issues, it helps cover the cost of your legal team.
Despite companies increasingly doing business online, many overlook the potential cost of a data breach. Plan ahead and be prepared with cyber liability insurance.