Today’s world is becoming increasingly reliant on technological developments so it’s no surprise that businesses are adopting new technologies to keep up with the pace. E-Commerce, email marketing, social media and cloud storage are the new normal and businesses are often expected to join the bandwagon if they’re serious about survival. But with the perks of new technologies also comes new risks.
Just how big is the risk? That largely depends on your business and much it uses technological equipment. However, nearly half of all businesses report up to five cyber risks, which can include exposure to viruses and hackers, theft of computer equipment and internal fraud. Additionally, over a third of all businesses experienced a data breach last year.
That goes to show that all businesses, no matter how many firewalls you’ve installed, have cyber risks. Businesses that don’t heavily rely on computers may find that general liability coverage will suffice, while businesses that need computers to thrive may require more substantial coverage. Cyber liability insurance offers protection for such businesses, which can include online retailers and marketers, technology companies, financial institutions, healthcare professionals, schools/universities and law firms. Cyber liability insurance is designed to protect businesses from a loss of information, which includes sensitive customer data.
Cyber risks extend beyond attacks from hackers. They also involve the following:
- Natural causes: Destructive weather, such as lightning that causes power surges, can damage computer equipment that contains sensitive information.
- Human error: Unintentional accidents involving computers can have dire consequences, such as leaving a work laptop at a cafe, resulting in an information leak.
- Intentional attacks: Illegal criminal activity can be committed by both external hackers and even internal persons.
These accidents or attacks can be extremely costly, with expenses involving retrieving lost or stolen data, creating safer online practices and performing cleanup efforts on behalf of compromised customers. The right coverage can be the difference between re-opening your doors or keeping them closed forever if a cyber liability event occurs.
Protect your business’ digital assets today. Call us at (208) 365-2160for more information on Boise business insurance.