As a business owner operating in the internet-connected world, protecting your company has to go beyond protecting your physical assets. Cyber insurance is becoming an essential part of every business’s strategy to safeguard against hackers that can damage your business.
Let’s take a closer look at how cyber insurance can protect your business.
What is Cyber Insurance?
According to a 2023 report, 68% of organizations suffered a cyberattack within the last 12 months. The insurance industry has added new areas of coverage to protect your company from anybody who harms your data, computer systems, and anything touching the internet at your company.
Cyber Insurance is designed to help businesses that suffer damages from data breaches, criminal activity, and human errors related to data. IBM’s 2023 Cost of a Data Breach Report estimates the average cost per breached record is $164.
A record refers to any data such as single business transactions, customers, organizations, etc. Basically, any information your business collects or uses. The more data you have stored, the more that cost adds up.
Why Businesses Need Cyber Insurance
Since the internet is global, most businesses in every state are vulnerable. In September 2023, Navvis, a health management service partner of Hawaiʻi Medical Service Administration (HMSA), reported a security breach that impacted the confidential and healthcare-related information from past and present staff members.
Most businesses rely on online and computer platforms. Because of this, every business from small start-ups to large corporations are a potential target for cyber threats.
Cyber insurance has become necessary to protect the financial well-being by having a plan in case a business is the target of an expensive cyber attack.
Key Benefits of Cyber Insurance for Businesses
Financial Protection from Cyber Threats
Imagine waking up to find your business’s data being held ransom or your customer’s sensitive information leaked. The financial fallout could shut your business’s doors permanently.
Cyber insurance works to cover the costs associated with data breaches, including customer notification, legal fees, and more to help keep your business running smoothly without breaking the bank.
Safeguarding Your Business Reputation
Businesses work hard to earn the trust of their clients and a cyber attack could damage that reputation overnight.
Cyber insurance helps manage the situation professionally, showing that your response is swift and effective, preserving your hard-earned reputation.
Compliance with Hawaiʻi Regulations
Hawaiʻi, like many states, has regulations that require businesses to protect their customer data. Cyber insurance can provide the resources needed to navigate these regulations, keeping your business in compliance and avoiding potential fines.
Peace of Mind for You and Your Customers
Knowing that your business is protected against cyber threats provides peace of mind, allowing you to focus on what you do best – running your business. It also shows your customers that you’re serious about safeguarding their data, reinforcing their trust in your brand.
Choosing the Right Cyber Insurance Policy
Not all insurance policies are the same and neither are the providers. Take the time to consider what is important to your business and what kind of provider you want to work with. Take the time to find the right provider and policy; you are trusting both to safeguard your business.
Assess Your Business’s Needs
Your business is unique, and so are its cyber risks. Consider the type and amount of data your business uses or stores, and how much business activity you conduct online.
Partner with a Reputable Provider
For businesses in Hawaiʻi, it is important to choose a provider connected in the local business landscape. A local insurance agency can offer insights and coverage options specific to your industry and needs, and help you stay aligned with any local regulations affecting your business.
Regularly Review and Update Your Policy
The digital landscape is constantly changing. Regularly reviewing and updating your policy helps keep your coverage in line with your business and the latest cyber threats. Today, Cyber insurance is a necessity for most businesses, offering a safety net against the digital mishaps that can seriously damage your company.
It ensures that your business, reputation, and customer trust remain intact no matter what the digital world brings your way.
Partner with Atlas Insurance for Cyber Insurance
Are you ready to secure your business data? Your customers and your business deserve this protection. Locally owned and operated, Atlas Insurance understands how valuable your assets are and looks forward to helping safeguard your business.
Get started with the friendly team at Atlas Insurance today!