Why Businesses Need Cyber Liability Insurance Now More than Ever

Why Businesses Need Cyber Liability Insurance Now More than Ever

Cyber liability insurance and IT security are vital for the survival of businesses today more than ever before.  Being aware of the benefits of adopting technology can bring many small businesses are steadily increase their IT-driven automation and network connectivity. These businesses have also been expanding their digital footprints, including leveraging the cloud and the Internet of Things (IoT). The coronavirus outbreak saw a sudden surge in the use of cloud-based IT resources and remote working systems.

Small businesses face growing cyber liabilities because of technological transformations such as:

1. Increased Adoption of Remote Workforce/Collaborative Tools

With more people working from home, many businesses have had to let their employees access their IT systems from remote workstations. You may have the most robust network firewalls, antivirus, and other IT security solutions at your physical office, but the devices that your work-from-home employees are using may not be completely secure. This can expose your business to more cyber liability risks.

You can minimize your cyber breach risks in this scenario by having your remote working staff access company networks via Virtual Private Networks (VPNs). For financial protection in the event of an IT system attack, be sure to get cyber liability coverage.

2. Electronic Transactions

Hacking threats that come with digital transactions are another reason why your business needs cyber liability insurance. Maybe you never used to accept electronic forms of payments for your products before COVID-19. Due to the pandemic, your online transactions might have increased, with fewer customers coming in person to your brick-and-mortar store or office.

As with all web-based businesses or eStores, your eCommerce site is vulnerable to cyberattacks. The payment processing system also introduces additional cyber liability threat. Similarly, any third-party vendors or people handling your customer data to help process transactions are a cause for cybersecurity concerns.

A data breach can leave you exposed to costly lawsuits and liability claims. If you’ve embraced advanced IT technology, including remote working systems and electronic payments, it’s vital that you consider having cyber liability insurance just in case your software or databases are breached by bad actors. Contact the experts at Steve Wilk Insurance today if you need help getting the right insurance coverage for your IT system. For in-person consultations in our office, feel free to visit us at 310 S Main Street, Suite C, Lombard, IL 60148.