Cyber insurance is just as essential as other types of insurance that you would invest in — homeowner’s, car, or life. This is especially true if you work for a company that manages large volumes of data. IT companies can only recover so much data if it gets lost or wiped from their systems. According to Security, the global cyber insurance market is currently worth $7.8 billion in 2022. That means there are situations and dangers out there to protect against. Let us look at the basics of cyber liability insurance.
Chances are that your business holds some of its important data in digital files. Information stored digitally can be more easily organized because it requires less time and no physical space. If something happens to the computer or hard drive on which the information is stored, however, it could be lost forever. Cyber insurance can protect your employees’ and clients’ personal information from theft, data breaches, ransomware hacks, and other online dangers by helping your business pay for its financial losses after such an event.
Cyber liability insurance differs from generic insurance in that it protects you from lawsuits against your company. If your business’s customers are other businesses, then the erasure of your company software, data, or access credentials could keep your employees from meeting the needs of the customer. Similar to IT companies being backed up with requests, your customers may hold you accountable for the fact that they are losing money over such a situation. Rather than losing your software due to ransomware and your source of income, protect yourself with liability insurance. It can help pay for your court fees and settlements until you get back on your feet.
Having a solid cyber insurance system in place can not only help you retain the clients you have even when you have suffered an attack but also help you acquire new clients. Some clients may have previously worked with companies that did not see the need for insurance and lost money in the end. By fortifying your company with cyber liability insurance, you can assure new clients that their information is in safe hands.
For more information about cyber liability insurance or to get started with our services, contact American Technology Specialists today and download our ATS Cyber Insurance Ebook. We provide the managed IT services Phoenix, AZ trusts.