Cyber liability Insurance – Today’s Necessity
When you think cyber-attacks you may be thinking about a man from a top secret agency being hoisted down from a ceiling trying to retrieve a NOC list… or maybe that’s just me. Many people still feel that cyber liability insurance is reserved for major government agencies or corporations. However, in today’s digital era, cyber liability insurance for automotive dealers has become increasingly important – no matter what the size.
Identifying the Existing Vulnerabilities
New and used automotive dealers are well aware of the vulnerability of computer systems and networks. Majority of them, however, fail to consistently identify these vulnerabilities and fall prey to data breach and its associated negative repercussions. Lack of prevention strategies and post-breach policies often result in both mega corporations as well as start-ups to face the consequences of a cyber attack.
Why Small Businesses Go Bankrupt?
Confidential and sensitive information such as proprietary corporate data and customer’s personal data, including social security numbers and credit card numbers, can get exposed to hackers. Small businesses are more vulnerable to cyber-attacks versus mega corporations. 55% of small businesses have experienced a data breach and 53% have had multiple breaches. High data recovery costs, business interruptions, customer notification costs, and investigation and crisis situations force small businesses to go bankrupt. In addition they also risk losing their hard earned reputation.
Ways in Which Cyber Liability Insurance Helps:
Cyber liability insurance does not imply that your company would be able to prevent a cyber attack from taking place. It, however, helps you to have complete control over the situation post data breach. The interconnected world that we live in makes it impossible to run businesses without the use of the internet. The risks associated with confidential data storage are continually increasing. It therefore makes a lot of sense to gauge your deaelership’s online presence and purchase cyber liability insurance at the right time.
Cyber liability insurance gives you peace of mind and protects your company’s assets if a cyber-attack event occurs. It helps organizations big and small to mitigate the impact of data breaches. Cyber liability insurance also helps organizations overcome the impact of heavy losses due to diminishing sales turnover, negative publicity and low customer and investor confidence. It further helps such companies in implementing and overhauling security systems, software infrastructure and trained personnel.
While responding to a cyber attack, many small businesses end up facing bankruptcies and are forced to shut down shop within no time. Cyber liability insurance assists such businesses to recover the cost of responding to a cyber-attack which otherwise would deplete the capital and savings of such small businesses.
Cyber liability insurance not only helps save your company’s reputation and customer confidence, but also supports the critical financial standing of your company when your company is undergoing a risky crisis situation of an unexpected cyber attack.
The dynamic and fast paced growth of e-commerce businesses in the 21st century has given rise to the threat of data breaches. This implies that organizations must consider cyber liability insurance as an important product. Organizations of all sizes can easily afford cyber liability insurance, as this product represents a very small percentage of an organization’s annual insurance costs.