What Is Cyber Insurance and Why Do You Need It?

Written by Sarah Davis

July 27, 2022

The online world is a powerful place to grow your business. Managers, entrepreneurs, and small businesses can all benefit from being online. The online world is also open to attacks that can be used for significant damage, especially when it comes to personal information.

If your site suffered a cyber event, you might not only lose your business, but you could also lose your professional reputation. So, what is cyber insurance and why do you need it?

What is cyber insurance?
Cyber insurance protects individuals from the financial risk of cyber-attacks. Cyber insurance protects not only individuals but also their personal and professional reputations. It also protects companies from the financial impact of cyber-attacks, data breaches, and related liabilities. Cyber insurance is a vital part of any business, not just because of the risks to personal and professional reputations but also because of the financial impact of cyber-attacks.

Why do people need cyber insurance?
As technology continues to advance, cyber insurance is becoming more and more important. Cyber insurance will usually cover you for liability, financial loss and the cost incurred.
Cyber insurance typically covers the following events.
The exposure of private or confidential information
Liability from the loss of confidential information
Data recovery
Damage to systems
Extortion
Loss of operational costs
As you can see there are a lot of different things to think about when purchasing cyber insurance. You should consider the amount of risk you feel you are taking, the amount of damage that could happen, and the amount of coverage you need. Policies can be tailored to suit the business.

How does cyber insurance work?
Cyber insurance protects the insured against typical cyber-related events. The policy will provide cover for costs associated to privacy breaches, lawsuits because of loss or theft of confidential information and managing the threat of extortion. Loss of profits or additional operational expenses because of a threat, along with recovery or replacement of systems is also part of the cover.

Conclusion.
The purpose of cyber insurance is to protect your finances, liability and costs incurred from managing attacks. Don’t leave it to chance, speak to one of our friendly team members and make sure you are covered.

Get the right policy for your home and contents through SB Protect Insurance Brokers. Visit sbprotect.com.au or call (07) 5572 0912.

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