Commercial Cyber Security Insurance is a form of business insurance that protects your business against the risks posed by cyber threats. The Center for Strategic and International Studies estimates that cyberattacks cost $375 billion per year, and many businesses are unaware that they are at risk. Additionally, many businesses are concerned about privacy breaches, which can result when an employee accidentally sends sensitive email to the wrong person. In such situations, commercial cyber security insurance is crucial.
A commercial cyber security insurance policy will pay for losses incurred by a business due to cyber incidents, including loss of digital records containing personally identifiable information. It will also cover legal fees, court judgments, and business interruption. Moreover, this insurance will cover the costs associated with hardening systems and upgrading technology. Therefore, a small business may be hesitant to invest in such coverage. However, if your business is mature, the cost of cyber-attacks can significantly reduce the overall cost of running a business.
While cyber-insurance is a valuable investment, it can be costly if you do not understand the risks involved. In case of a breach, you could end up spending more than you can afford to replace lost data. A commercial cyber insurance policy will help you manage your risks and recover after a breach. But it is important to understand what it covers. You may not want to invest in a plan that doesn’t include sufficient protection.