If your business collects data or uses technology, you could be a prime target for cyber criminals. Some companies have lost millions of dollars due to concentrated cyberattacks that resulted in breaches and compromised data. At Hawsey Insurance, we can provide a free cyber insurance quote so that you can weigh the benefits versus risk of covering your sensitive company information and private customer data.
Cyber insurance protects your business from expenses and liability related to a data breach. This could include the following costs:
- legal counsel and defense
- notification costs
- crisis communications
- digital forensics team
- setting up credit monitoring for individuals impacted by data breach
Many companies consider cyber insurance an essential part of their commercial insurance coverage. Costs associated with data breaches stem from state laws that require notifications and other actions to protect those impacted by a data breach.
Costs Associated with a Data Breach Recovery
Let’s look at some ways cyber insurance can protect your business:
- Lost Data. Companies are legally liable to protect customer data stored in their databases. Data is often stored on site, in data warehouses, or in the cloud. Personally Identifiable Information (PII) and health information are protected by cyber security laws. If hackers access this information in your database, you could be in for some hefty recovery fees, legal fees, and other expenses. Documenting what data is stored where and creating stringent policies around cybersecurity can help you recover your data following a breach. It may also mitigate your vulnerabilities when it comes to hackers. In the event of a breach, cyber insurance can cover the resulting costs to notify customers and set up credit monitoring. It can also help pay for legal costs associated with a breach.
- Lost Devices. Today, more workers login from remote locations than ever before. This requires mobile devices such as smartphones and laptops that can increase the risk of stolen credentials hackers use to access your company network. You may not be able to prevent 100% of theft attempts, but you can educate employees on how to avoid exposing their logins and passwords to cyberthieves. Depending on how your policy is written, cyber insurance may cover devices damaged or destroyed by cyberattacks.
- Notification Requirements. If you fall victim to a cyberattack, you’re legally obligated to notify all users impacted by a data breach. Cyber insurance can pay for legal costs to educate customers on how they can protect their privacy and credit following a breach. Your company may have to set up a call center to handle these notifications. As you can see, costs build up quickly when it comes to data breaches.
From forensic teams that can help you recover your data to legal representation to protect you against possible lawsuits, cyber insurance may be much cheaper than the financial risk of a data breach. Having cyber insurance can mitigate the financial risk associated with cyberattacks.
At Hawsey Insurance, we can help you weigh the pros and cons of investing in cyber insurance. Contact our offices in Jackson,
Madison, or Southaven to get a free cyber insurance quote today. We proudly serve businesses in Mississippi and the surrounding states.