The Growing Importance of Cyber Insurance

Technology isn’t going anywhere. In fact, it continues to expand into nearly every part of our lives at home and at work. With more of our personal information on computers and in “the cloud,” we are also opening ourselves to a greater risk of cyberattacks. In this day and age, every business should consider cyber insurance, and insurance agencies have a growing opportunity to offer this line of business.

More at Risk than You Think

There are many ways that one’s digital files or sensitive information can end up being exposed. The risk is not limited to where or how you store your information. Other companies you work with or software you use can also leave you vulnerable. An attack doesn’t have to directly affect your files in order to cause damage. If a third-party company or software has done business with you and their information gets compromised, that means there is a chance that your clients’ information could be endangered. Cyber insurance covers the costs of required investigations and forensic expenses. Without cyber insurance, the costs of the investigations alone have the potential to bankrupt smaller companies.

Big Losses

If you make a lot of sales online and an attack is perpetrated on your website, you could end up losing profits. Distributed denial of service (DDoS) attacks block users from accessing your website. Depending on how much a company or agency makes from online sales, a DDoS attack could end up costing them thousands in lost profit. DDoS attacks are considered a business interruption loss and may be covered by cyber insurance policies.  

Even though security and updates are always improving, cybercriminals are out there cultivating their craft. Cyber insurance helps protect more than just your information; it’s there to help protect your agency with coverage for business interruption losses, legal fees,  data breach, and defense against cyber-extortion.

Looking for a business policy that offers cyber protection? Check out MiniCo’s newly upgraded BOP for self-storage risks! MiniCo also offers stand-alone cyber insurance for multiple commercial businesses.

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