Cyber liability insurance is the new concept of IT support as a safety net against cybercrime. IT providers trying to stay on the cutting-edge can work with insurance companies to help reduce the harmful effects of security breaches. Here are ways that cyber liability insurance can help a company focus more on its business than worrying about cybercrime:
LOWER CYBER RISKS
When a company, constantly, transfers and stores data, it creates risks that confidential information will leak or get stolen and destroyed. You can lower your risks by backing up the data in more than one place with a cyber insurance policy that covers your hardware, software, and files. That doesn’t stop an attacker who seeks to damage your credibility, though. Another issue that can hurt your business reputation is the proliferation of negative reviews on social media. Traditional insurance policies do not, necessarily, cover this broad range of issues surrounding data transmission. Keep these factors in mind with IT support.
CYBER LIABILITY POLICY FEATURES
One way an IT support company can become more futuristic is to partner with an insurance company and offer cyber liability insurance as part of its package. The policy should cover the following conditions that could affect liability:
- Company downtime
- Data loss or damage
- Identity theft
- Intellectual property
- Phishing attacks
- Ransomware attacks
- Third parties losses
- Wire fraud
Malware attacks, most often, result from employees mistakenly click emails that infect the system. The more employees are trained to guard against hackers posing as legitimate vendors, the more it can prevent cyber attacks. Yet, hackers are still learning how to penetrate systems with high-quality security layers. In other words, despite the advancements in security technology, it’s still possible for any company to be vulnerable to a cyber attack. Cyber liability insurance is an extra protection to reduce the effects of hackers, who think they can sabotage a business.
LIMITING THE COSTS OF A BREACH
Your company needs to be prepared on how to deal with cyber attacks, both technically and financially. If your company is breached, the costs can add up to a substantial combination of tighter security, equipment maintenance, and legal fees. Through cyber liability insurance, you can keep costs of a security breach from spiraling out of control. Facing multiple lawsuits can put a strain on a company’s finances.
One of the biggest disruptions to a business, when it suffers a breach, is downtime. Every company should have a backup plan as its main infrastructure undergoes maintenance. Additionally, a company needs to have a goal of minimal downtime. Insurance provides an extra layer of safety to your business just in case you still have to deal with disruptions that slow down your traffic or overall operation.
SEARCHING FOR IT SUPPORT
An IT support company offers cyber liability insurance; this concept helps reduce the damages caused by security breaches. Some companies can save millions by making sure their hardware and digital assets are covered. Contact us at ION247 to learn more about how we can strengthen protection for your business.
*Blog post updated September 23, 2020.