CYBER INSURANCE
CYBER INSURANCE :
Why You Need It And What To Look For In A Policy
Business owners who utilize technology within their company ( and let ’ s be honest , who doesn ’ t nowadays ?) are facing cyber threats at an unprecedented rate . For example , the number of recorded data compromises in the United States stood at a whopping 3,205 cases in 2023 . Not only that but the average cost of a data breach for US businesses was more than double the global average ($ 4.45 million ), sitting at $ 9.44 million . So , what can businesses do to protect themselves ? In addition to having the right security procedures and redundancies in place , one thing businesses must consider is cyber insurance . That ’ s why our team at Nesbit Agencies has put together a collection of detailed information about cyber insurance , including what it is , why you need it , and what to look for in a policy .
UNDERSTANDING CYBER INSURANCE
The first thing you ’ re probably wondering is , “ What exactly is cyber insurance ?” Cyber insurance is a specialized insurance product designed to protect businesses against the financial losses and liabilities arising from cyber incidents and data breaches . In general , cyber insurance will cover financial costs incurred from a data breach , revenue losses due to business interruptions , losses resulting from payments to bad actors in business email compromise ( BEC ) and phishing attacks , as well as ransomware and extortion payments . So , although cyber insurance doesn ’ t entirely protect companies from every financial impact or liability that may arise from a cybersecurity incident , it can provide crucial support in helping businesses manage and mitigate the fallout .
4