The topic of cyber liability insurance is getting discussed more and more often. Some businesses have embraced it, while others do not understand it at all. To survive in the changing technological and business environment, you need accurate and up-to-date information about what is best for your business. IT consulting in Arkansas provides a great source of information and expertise. Some of the most commonly asked questions about cyber liability insurance relate to whether it is necessary or not. Here are two great reasons why your business should consider this type of insurance:
Your Business is at Risk
When you have a business that handles sensitive information, such as financial records and customer’s personal information, you are a potential target for a data breach. Confidential information can fall into the wrong hands, either through the malicious intent of hackers or through careless conduct from your employees. Once this data is out, it can be sold or publicized, which can have serious consequences.
Many business owners don’t believe that their SMBs can be targets of cybercrime. It’s a widespread belief that hackers only target large companies, such as international financial institutions or social media platforms. This misconception could be because these breaches are more widely publicized and have more affected parties and money involved, but the stats say otherwise. Smaller companies are actually at greater risk of cyber-attacks, and unfortunately, they often have poor cybersecurity measures and no cyber liability insurance in place.
So, regardless of the size of your business, the industry you are in, the type of information you handle, and your level of internet usage, your business can very well be a target of cybercrime. Fortunately, companies that provide IT consulting in Arkansas can help you in assessing the potential risk. If you are covered by business liability insurance, this, unfortunately, does not cater for cybercrime.
Consequences of Cybercrime
Cyber-attacks have real consequences that should not be ignored. When you are the subject of such an attack, this can severely compromise the privacy of your business, your clients, and your employees. There are various costs that you may have to incur. Some of these are stipulated by law and include the cost of notifying victims, indemnity recovery costs, and legal costs. Your reputation can be tainted and you may suffer from a loss of business because of a loss of trust.
Cyber insurance can help you deal with attacks when they occur. There is peace of mind in knowing that you have insurance cover in place. To minimize the risk of such cases, you need an effective cybersecurity plan in place. Why not work with a company that understands the latest cyber-related risks businesses in different industries face and how best to mitigate them? JMARK Business Solutions, Inc. is a leader in providing security management support. We provide IT consulting in Arkansas and our team of experts can work closely with you to tailor IT solutions for you. Contact us now to learn more about our services.
