A cyberattack can cause serious damage to a business’ reputation. As an insurance provider, you are entrusted with a lot of personal and important information such as:
Credit card information
Any breach of this information could cause serious issues, such as identity theft, which can lead to client distrust and potential legal trouble. Recovering from a cyberattack takes time, resources, money and dedication, but it’s absolutely necessary to make your clients feel safe again.
Thankfully, cyber liability insurance can help with the reputation of your insurance agency after a cyberattack.
Reputational damages have often put companies out of business because they were not equipped to recover after an accident. In fact, many businesses that are affected by a cyber breach go out of business less than a year after the incident. That’s because trust is oftentimes hard to rebuild, which makes preventing reputational losses even more important.
What Reputational Damages Does Cyber Liability Insurance Cover?
With cyber liability insurance, you can receive compensation for your reputation recovery needs. Cyber liability insurance can help cover human resource 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 public relations management so that you can work to recover your business’ reputation while also working to increase your cybersecurity.
While a lot of reputational damage may not seem financial in nature, 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 cyberattack and handle possible related lawsuits.
Cyber liability insurance is crucial for insurance agencies across the country, regardless of location. Clients turn to their insurance agent in case of an accident or disaster because they are a beacon of trust. A breach of security can leave your clients feeling unmoored and unsafe, thus eroding that trust.
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.