Here’s Why You Need Cyber Liability Insurance

Are your digital assets protected? As we move further into the digital transformation, assets are slowly but surely being moved into the digital world. With this new development comes the increased risk of cyber attacks and data breaches.

Cyber attacks and breaches can be detrimental to business and are often too devastating to come back from,  making Cyber Liability Insurance is a necessity in today’s world. It is estimated that 70 percent of companies are transferring the risk of a cyber attack to an insurance company.

What Is Cyber Insurance?

Cyber liability insurance helps you keep your business afloat in the event of a security breach. The goal is to transfer some of the risk of security breach over to insurance, rather than bearing the losses alone.

Cyber attacks could range from ransomware, software designed to hold your digital information of hardware files hostage, to the more prolific identity theft. Theft of sensitive data or theft of intellectual property can leave your company with major financial losses, damage the reputation of your company, as well as create trust issues between you and your clients if a client’s private information becomes compromised.

Why Cyber Insurance is Necessary

It is in your best interest to invest in cyber insurance to help with potential risks. If your company has digital assets, it is doing the business a disservice if a well-rounded cyber protection plan is not secured. If you lived in a flood plain, would you have flood insurance? Whether you’re dealing with protected data or not, cyber insurance is another layer of business continuity. if your company were to experience a disruptive security incident, cyber liability insurance would help keep you operational.

A single breach could easily set you back thousands of dollars in legal fees, costs of investigating the incident, costs of notifying your clients of the breach, identity recovery costs, costs of restoring data, and downtime costs. Most businesses simply can not take the hit from these sort of expenses, and fold within a few months of a breach. Thankfully, these are exactly the elements cyber liability insurance assists with.

Obtaining the Coverage

It makes all the difference to utilize a provider who is knowledgeable about the industry your business is in, and one is who is willing to evolve as cyber threats evolve. The nature of cyber breaches is dynamic and ever-changing, therefore adaptability is key. Cyber insurance is not a luxury, but a necessity. It will neutralize risk and help you stand back up in the event of a security breach.

About Arroyo Insurance Services

Arroyo Insurance Services was established in 1986, but we have roots that go back before 1950. Today, we are one of the leading independently-owned, client-oriented agencies in California, with 11 locations and over 140 employees with a combined experience of over 450 years. We provide insurance and risk management services to individuals and businesses, and are committed to providing each client with thorough, professional, and attentive service. Call us today at (877) 220-4769 to learn more about what we can do for you.