Many businesses in Canada use cyber liability insurance to protect them from the risk of data breaches, ransomware, and other malicious acts. As the threat of cyber attacks increases, businesses understand why protecting themselves and mitigating risks with this insurance is essential. Here are the top eight reasons you need cyber insurance for your business.
Cyber Attacks Are More Common Than Ever Before
Since the pandemic, many businesses have noticed an increase in cyber attacks. When every company had to go online to continue functioning, it opened up an opportunity for cyber criminals and hackers to steal data. With the increase in cyber attacks today, studies show that one occurs every 20 seconds. The chances of your business falling victim to this kind of crime is greater than experiencing a fire. As a result, you need cyber liability insurance to protect you in case there is an attack.
A Data Breach Can Have Serious Consequences
The Canadian government passed an update to the Digital Privacy Act that requires all Canadian companies to file a report if their data is breached. Studies show that the cost of data breaches runs around $190 per capita in Canada, with customer personal information being stolen. It will harm your reputation with the public, and you can lose customers. Cyber insurance will protect you by paying legal and civil damages and covering the cost of remediation and notification. It may also cover forensic investigations and computer restoration expenses.
It Protects You Against Ransomware
Another major cyber threat today is ransomware. Cybercriminals hold your data and networks hostage in these cases and demand a large payment to give you access. Ransomware causes a business interruption and compromises all of your information. They may threaten to compromise your confidential data, disable your operations, or more. When you have cyber insurance, the insurance will cover the cost of the ransom, any investigation, and legal fees if necessary.
It Helps With Technology Failures
Many businesses are entirely dependent on their technology to function. You may store your documents online, and you may not be set up to operate without access to your technology. If you have a technology failure or suffer a denial of service attack, you need insurance to get you through it. Cyber insurance will cover the cost of restoring data and computer programs, and it can pay for restoring or recovering damaged or corrupted data that is caused by a denial of service attack. If you have to pay out of pocket, it can cost a significant amount of money, and some businesses can’t recover from the cost. Having insurance ensures that you are protected.
Cyber Insurance Is Relatively Affordable
Comparing cyber insurance to other business insurance policies is relatively affordable, considering how much protection you receive. As the threat of cyber attacks grows alongside technological advances, cyber attacks pose a greater risk than a fire or a flood. It is critical that your business be protected, as your data may be one of the most valuable assets you own. Having to restore damaged files and recover data is time-consuming and expensive, and this insurance helps to ensure that you can do it as painlessly as possible.
Cybercrime Is Highly Organized
Some people think of a cybercriminal as a young student trying to break into a business for fun, but cybercrime is actually a vast conglomerate of very organized cyber criminal teams. They often work together to steal data and use it to get rich. Every business is at risk, including small and medium-sized enterprises. In fact, cybercriminals know that smaller businesses are less likely to have protections and insurance in place. You can protect your business with cyber insurance and make sure that you can get through a crisis if it occurs.
Cyber Insurance Is Comprehensive
One of the benefits of cyber insurance is that it is comprehensive. It usually includes coverage for everything from data breaches to cyber extortion, identity theft, computer attacks, and liability. Having this kind of protection for your business allows you to move forward knowing that you have the resources to handle any attack that occurs.
It Is More Expensive to Budget for a Cyber Threat
Many small businesses don’t budget for cyber threats, and it would cost more than it does to get cyber insurance. The important thing is to make sure that your business and your data are protected, and cyber insurance takes care of this for you. Budgeting for a cyber threat is complicated because it can be costly, whereas cyber insurance is a predetermined payment. It is much easier to add it to your budget.