February 3, 2023

Why Does Your Business Need Cyber Insurance in 2023?

Worried about the costs of a cyberattack? Cyber insurance can help ease some of the worries.

As a business owner, you are responsible for the safety and security of your employees, customers, and data. With the increasing threat of cyber attacks, it is more important than ever to have adequate cyber insurance in place.

A cyber attack can have a devastating effect on your business, causing data breaches, loss of customer confidence, and damage to your reputation. In some cases, it can even lead to business interruption and legal liability.

A cyberattack can put any company out of business. Even if the business stays afloat, the recovery process can be time-consuming and inconvenient, with the average cost of a data breach totaling $9.44 million. Therefore, it’s essential for any business to stay protected with cybersecurity and cyber insurance.

What is Cyber Insurance?

In the case of a cyberattack, cyber insurance handles incident response expenses, recovery costs, and business interruption loss. It helps cover your business from potential liabilities, including:

  • Lost income
  • Recovery of stolen data
  • Expenses from damaged computer systems
  • Notifying customers about the hack
  • Options to identify cybercriminal

What Are The Benefits of Cyber Insurance?

1. Get compensated for income loss

After you get hacked, your business may be unable to operate as usual, as you may lose access to your device, data, accounts, and email. This means lost revenue and customers. Even worse, it may take a while for you to recover from the attack, prolonging the costs of business interruption.

This is where cyber insurance can help. For the income loss that you experience during and after the attack, you can get refunded up to your coverage amount.

2. Help repair and restore your devices

In case of a breach, cyber insurance covers the cost to repair and restore your software and systems with network and information security liability coverage. This coverage offers protection against unauthorized access to software or devices. If the breach results in system or software failure, cyber insurance will cover the expenses of getting the software and devices back up and running.

3. Minimize legal expenses

Most businesses require legal assistance to deal with a cyberattack. If you hire a legal advisor without insurance, the costs may be significant. If you want to secure your business as well as lower legal expenses, you will need cyber insurance for your business. Many cyber insurance policies include legal support to reduce the financial burden on businesses.

4. Support on forensics audit

Forensic auditors are needed to help investigate the cause of a breach and what exactly was lost. This investigation will help you identify the threat and counter the attack. Cyber insurance can help you cover the costs of an investigation.

5. Cover costs to notify customers

When a business gets hacked, law enforcement agencies require businesses to report the breach to customers. Informing every customer can be expensive, adding to your already significant recovery costs. Cyber insurance for businesses covers the cost of notifying customers about a breach. What’s more, you’ll also receive referrals to law firms who act as breach coaches or counsel.

If you don't want to pay the expenses above out of pocket, you will need cyber insurance for your business. 1Fort is the only solution where you can quickly and easily meet cyber insurance requirements for major carriers.

Get started on 1Fort today and start protecting your business from these costs.

Get Approved for Cyber Insurance Fast With 1Fort

1Fort can get your business ready for cyber insurance by helping you automate the work required to become insurable for top carriers. We integrate with your cyber security tools to assess your cyber health and identify any potential risk that could cause carriers to reject your application. We do this by partnering with your broker to help you get quotes from various carriers with just one submission.

Ensure that you have best-in-class security controls with no tech expertise needed.

Book a demo today and we'll help you and your broker get started.