Why Do Companies Need Cyber Insurance?

It takes only one cyber event or data security breach to affect your company’s financial results, or even potentially put you out of business. One resourceful hacker, virus, or system glitch could shut down your entire network within minutes, paralyzing operations and your ability to earn income. One successful hack, lost laptop, or lost paper record could cause a data breach that impacts the privacy of customers, employees, and others.

The costs associated with a single cyber-attack can be catastrophic. Beyond the financial costs of potential litigation and regulatory defense expenses and the costs associated with mandated notification requirements, there’s also the time involved in defending your company’s reputation, and the need for skilled computer forensics teams to determine the extent of a breach and whether private customer information may have been compromised.

A CyberRisk policy would reimburse your organization, subject to applicable retention, for computer forensics experts, and could also provide coverage for potential business losses and extra expenses that might occur while you’re in the process of restoring your business.