Many people associate cyber risk insurance with being used when digital data is stolen for nefarious purposes. However, insurance can also assist greatly for when data simply gets lost for whatever reason. Whether data was lost due to a third party or a glitch in your system, you will be thankful you have insurance to lend a helping hand.
Business Interruption Expenses
Regardless of what information was stolen, you may need to halt or slow down certain business activities. Time and resources need to be spent building your system back up, and you could lose serious revenue during this period. A good insurance policy will assist you in getting through this time in one piece.
Costs Associated With Notifying People
A data loss means someone’s information was not stolen, but it might mean medical records or other crucial pieces of information have been lost. You will need to notify everyone affected of what happened, which can cost money. Insurance can help cover these costs. It can also help you after the data loss in rebuilding your system, making sure it is more secure so that this does not happen again.
Too many businesses think about cyber risk insurance after a data loss or breach has already occurred. Plan ahead and get an excellent policy that works well for your company’s needs.