A cyber attack can cause serious damage to a business’ reputation. As an insurance provider, you will be entrusted with a lot of personal and important information such as:
- Full names
- Credit card information
- Phone numbers
- Credit scores
Any breach of this information could cause serious issues such as identity theft, which can lead your clients to feeling unsafe. Part of recovering from a cyber attack other than the financial areas include the intangible ones. It will take time, resources, money and dedication to recover and make your clients feel safe again.
Thankfully, cyber liability insurance can help with the reputation of your insurance agency after a cyber attack.
Reputational damages have often put companies out of business because they were not equipped to recover their business after an accident. In fact, 60% of businesses that are affected by a cyber breach go out of business within six months of the incident.
With cyber liability insurance, you can receive compensation for your reputation recovery needs.
What Reputational Damages Does Cyber Liability Insurance Cover?
Cyber liability insurance can help cover Human Resource issues (HR issues) related to the incident as well as income loss driven by the breach itself as well as bad publicity. It can also help you pay for PR management so that you can work to recover your business’ reputation on a face level while you work to increase your security.
While a lot of reputational damage may not seem financial, the opposite is true. It heavily plays into your finances when you are receiving less business and dealing with bad reviews all while trying to recover from a cyber attack and handle possible related lawsuits.
Cyber liability insurance is crucial for insurance agencies across the U.S. Clients turn to their insurance agent in case of an accident or disaster, so a breach of security can leave your clients feeling unmoored and unsafe.
Is Cyber Liability Insurance Expensive?
Cyber liability insurance is generally inexpensive for insurance agencies. Depending on the policy, you could pay anywhere between $500 and $5,000 for cyber liability insurance depending on your location, risk and other factors.
Be sure to invest in a reliable and comprehensive cyber liability insurance policy for your agency. Keep in mind that you will need a policy tailored specifically for your needs, so connect with another agency today about protecting your agency’s clients and your reputation.
Also Read: First-Party vs. Third-Party Cyber Liability Insurance