Today, where manufacturing rely heavily on technology, cyber attack threats loom. Cyber Liability Insurance, often called Cyber Insurance, has emerged as a crucial risk management tool for manufacturing. This article explores the nuances of Cyber Liability Insurance, covering everything from its definition to potential scenarios and future trends.
What is cyber insurance and why do I need it?
Cyber liability insurance, often called cybersecurity insurance, protects small businesses against the substantial expenses of a data breach or malicious software attack. This coverage extends to various costs, including but not limited to customer notification, credit monitoring, legal fees, and fines.
Data breaches and other cyber attacks are rising, presenting a significant financial burden. Regardless of size, businesses are vulnerable to cyber threats due to notable vulnerabilities and potential inadequacies in their cybersecurity measures. This makes them attractive targets for cybercriminals.
Experiencing a cyber attack is not merely an inconvenience; it can potentially jeopardize your business’s existence. 2023 the global average data breach cost was $4.45 million, with almost 43% of these attacks targeting small businesses.
Businesses can use cyber insurance coverage to mitigate the financial impact of cyber incidents such as data breaches and attacks. This type of insurance aids in recovering from financial losses by covering expenses like credit monitoring, attorney’s fees, fines, data recovery, and other associated costs.