Cyber Insurance for Winston-Salem Businesses
A cyberattack occurs when unauthorized users access or damage sensitive electronic data. This can include customer information, company secrets, or other private data. Winston-Salem businesses are not immune to these threats, and they need to be prepared. Cyberattacks that expose customer information and disrupt business operations can cause significant financial losses, as well as damage to a company’s reputation.
Cybersecurity insurance, also known as cyber insurance or cyber liability insurance, is a type of insurance designed to protect businesses from the financial losses caused by these types of attacks. As the frequency and severity of cyberattacks continue to increase, more and more businesses are recognizing the need for this type of protection.
Why Winston-Salem Businesses Need Cyber Liability Insurance
Winston-Salem business owners have a lot to worry about. They have to protect their data and their customers’ data from theft, they have to ensure their systems are secure, and they have to be prepared for the possibility of a cyberattack. One of the best ways to protect your business from the financial consequences of a cyberattack is to purchase cyber liability insurance. Cyber liability insurance can help cover the costs of investigating and responding to a cyberattack, as well as the costs of litigation and settlements.
Ransomware, one of the most common types of cyberattacks, can cause significant financial losses for a business. Ransomware is a type of malware that encrypts a company’s data and demands a ransom payment to decrypt it. Today, businesses of all sizes are vulnerable to cyberattacks, especially ransomware attacks. According to the latest reports, 80 percent of organizations were hit with ransomware attacks in 2021. More than 60 percent of those organizations admitted to paying the ransom.
Cyber liability insurance can help businesses recover from these types of attacks by covering the cost of ransom payments, data recovery, and other expenses associated with a cyberattack. Cyber liability insurance also covers the cost of problems and hazards that may arise from a ransomware attack or other cyber-related incident that you may not have considered.
What Does Cyber Liability Insurance Cover?
Cyber insurance policies vary, but most policies offer some combination of the following types of coverage:
First-Party Coverage
Pays for the cost of restoring lost data and repairing damage to your system caused by a cyberattack. A first-party cyber liability insurance policy typically includes coverage for:
- Investigation and recovery of lost data
- Notification to customers or patients in the event of a data breach
- Business interruption expenses
- Crisis management and public relations expenses
Third-Party Coverage
Pays for the cost of lawsuits and other legal expenses that may arise from a ransomware attack or other cyber incident. When organizations file suit against you as a result of a cyber incident, this type of coverage can help pay for your legal defense. If you are sued over a data breach incident, third-party insurance can help pay for the cost of the suit, as well as any damages that may be awarded.
Examples of events that may lead to a lawsuit include:
- Failure to protect data
- Unauthorized access to systems or inappropriate use of systems
- Using weak passwords or leaving devices unprotected
- Failing to patch systems
- Not having up-to-date antivirus software
What to Expect When Applying for Cyber Insurance in Winston-Salem
When you apply for cyber insurance, the insurer will ask questions about your business’ size, industry, and history. The insurer will also ask about your data security practices and procedures. The insurer will use this information to assess the risk of a cyberattack and to determine the premium for your policy.
To get the best possible rate on your cyber insurance policy, it is important to have strong data security practices in place. Be sure to have a comprehensive security plan that includes data encryption, firewalls, intrusion detection and prevention systems, and employee training. You should also have a plan in place for responding to a data breach or other cyber incident.
When you are ready to apply for cyber insurance, be sure to compare rates and coverage from multiple insurers. Cyber insurance is a rapidly growing market, and there are many insurers to choose from. Some things to keep in mind when comparing policies:
- The policy limit is the maximum amount the insurer will pay for a covered claim. Make sure the policy limit is high enough to cover the cost of a ransomware attack or other major cyber incident.
- The policy deductible is the amount you will have to pay out-of-pocket for a covered claim. The higher the deductible, the lower the premium. Be sure to choose a deductible you can afford to pay if you have a cyber incident.
- The policy premium is the amount you will pay for the policy. Premiums vary depending on the insurer, the amount of coverage, and the deductible. Be sure to compare rates from multiple insurers to get the best possible price on your policy.
- When you are ready to purchase a policy, be sure to read the policy carefully. Pay attention to the exclusions and limitations in the policy. Be sure to understand what is and is not covered by the policy.
Cyber insurance is an important part of protecting your business from the costs of a data breach or other cyber incident. Be sure to shop around and compare policies before you purchase a policy to get the best coverage for your business.
Navigating the Complex Task of Applying for Cyber Insurance
Businesses need to be prepared for the possibility of a cyberattack. At Parkway Tech, we can help you navigate the complex task of applying for cyber liability insurance to ensure you select the right cyber insurance policy for your business. We will work with you to understand your business’ needs and help you find the policy that provides the coverage you need at a price you can afford.
Cyber insurance policies can cover a wide range of risks, including data breaches, cyber extortion, denial of service attacks, and more. This type of insurance can help to protect your business’s reputation, customers, and bottom line. Don’t wait until it’s too late to get cyber liability insurance for your Winston-Salem business. Contact us today to learn more.
