The world is advancing at a more rapid pace than anyone of us could ever know. We’ve long since entered the age of technology, and with it adapting to every human’s needs like the fast paced evolution of cars, just like adding another new configuration, humans also find various ways to cope with these changes. Along with these coping mechanisms, are the ways to take advantage of others using technology itself.
Your property can be stolen, your house can be destroyed, and other various things can happen in the physical world. However, with the rise of the technological age brought up the rise of yet another one – the virtual world. Like in the physical world, all your properties, identification and all other information can be stolen, destroyed or deleted in this world. There are various ways to protect you from these damages in the physical world and the virtual? We also have one, Cyber Insurance.
Cyber Insurance: Defined
Damages done virtually were not covered by the standard insurance policies, so with these policies, you are not protected at all. This is where Cyber Insurance will come in. This is a form of insurance which covers a business or an individual from any loss due to internet-based risks, like hacking, and the most common, data breaches.
Since the rise of internet-based attacks from the past few years, different insurance companies now offer cyber insurance to people. It is because your General Liability insurance does not cover it since it usually covers damages endured in the physical world.
These internet-based threats should not be underestimated because by becoming a victim of one will you in a much more difficult situation. A business without cyber insurance to protect will risk all of the information in its database from being stolen or hacked, including customers’ information like social security number, credit card numbers, bank accounts, license numbers and all other information containing details about its customer. On the other hand, an individual who is not insured for cyber liability risks is prone from identity theft, hacking and malware. In other words, without cyber insurance to fight these risks, is like having no clothes on, you are entirely exposed.
Data Breach Insurance and Cyber Insurance
Insurance companies offer Data Breach Insurance and Cyber Insurance, while others might offer more and different Cyber Insurance. Data Breach Insurance can significantly benefit small businesses since it can help you in responding to any cases involving the loss or stolen personally identifiable information. These cases may be a result of planned hacking or a team member leaving his or her laptop in some places. Nonetheless, your data coverage will aid you in paying for notifying the affected customers, in hiring public relations firms and offer monitoring services to the victims.
Cyber Insurance, on the other hand, is more recommended for medium to large business since it also covers more area. This insurance helps the policyholder recover the financial loss caused by these internet-based attacks and can hire investigators to follow up on the case. When a policyholder becomes a victim, this insurance will help in recovering the losses and pay for the notification for all the victims of data hacking. If it is your source of income, cyber insurance is a massive benefit to you because it will also cover loss of income because of these incidents.
It is essential to know this insurance before deciding to begin a small business or a large one if you wish. There is an old saying which says, “Prevention is better than cure.” Getting cyber insurance for your business, small or large, is a means of being prepared to, if not fend off, fight these cyberattacks and other technological risks and have the financial power to stand back up. However, another thing that is as important as knowing cyber insurance is to have definite knowledge about it and not just the general or rough idea. It is always better to talk to your trusted insurance company about the different coverages of this insurance and ask your insurance agent or financial advisor if it is the right for you before finding another continuing the process of application.
Since we are also adopting these seemingly unending changes in the world, you are highly encouraged to start thinking to pursue the tempting offers of protection and recovery of loss of this insurance. Start to protect yourself and your customers and get cheap business insurance quotes with cyber protection.
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