Just as technology evolves, the risks it comes with evolve as well. While businesses may have coverage for typical cyberattacks, they may not be as secure as they think. The truth is, cyber threats become more complex as more and more companies adapt to a digital form of conducting businesses. It makes sense, there is more opportunity for a business to let their guard down. Also, lots and lots of businesses rely on third parties for protecting their critical information, which only further increases the risk. Once a certain third party vendor is breached, who knows how many companies could be affected.
There are a few different types of cyber coverages to put some thought into:
- Business income
- This type of coverage will protect your losses and cover expenses while you recover from a cyberattack.
- Reputational harm
- Even after you have recovered, there may be damage to your company's image, causing a reduction in revenue. This type of coverage will help.
- Systems remediation
- So you've moved past the cyberattack, now what? It's a good idea to find weaknesses in the system and take precautions to ensure it never happens again. Certain offerings of this type of coverage may help fund your repair of system flaws.
Both cyber protection coverages and risk mitigation are things to be highly considered when running a business, especially in this day and age. It's important to be prepared, both internally and externally. Get your staff ready to respond to a cyber threat, but don't be afraid to look for some outside help as well from insurers. Also, more than 70% of businesses acquire cyber insurance thanks to an independent agent giving advice, meaning an agent's thoughtful advice will carry weight to them. Clients have a lot to learn about cyber risks, make sure your agency is there to keep them informed.
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