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Why Do Businesses Need Cyber Liability Insurance in 2021?

Over the last several years, the frequency and intensity of cyberattacks has been ramping up. Naturally, this has impacted businesses of all sizes across the globe. As a response, many companies turned to cyber liability insurance to supplement their standard business insurance to protect against the often devastating result of these attacks. What is cyber liability insurance, who needs it and what exactly does it cover?

What is Cyber Liability Insurance?

The fundamental purpose of cyber liability insurance is to protect businesses from the expensive aftermath of cyberattacks or data breaches. Many types of events can trigger the use of cyber liability insurance. In 2021, the most common triggers are fund-transfer fraud attacks, email phishing scams and ransomware. 

Who Needs Cyber Liability Insurance?

These days, virtually every business should opt for a cyber liability insurance policy. If a business relies on technology for daily operations or has any sort of online component, they should be sure to protect themselves with insurance. Again, this applies to most, if not all businesses these days. 

Cyber attackers use various methods to gain access to critical information like personal staff information, property or even financial data. Alternatively, they can use ransomware attacks to cripple a network until a ransom is paid.  We saw this happen in the state of Maryland last year, and that trend is continuing into 2021. When we consider these risks on top of the fact that many businesses are more vulnerable than ever in a fully remote working environment, the need for cyber liability insurance becomes quite clear.  

What Does a Cyber Liability Policy Cover?

There are various policies available, so it is simply a matter of choosing the coverage that best suits your business. A small business just getting its start won’t need nearly as much coverage as a massive global enterprise. At the very least, you’ll want to choose a policy that covers expenses incurred due to a cyberattack. You may also want to consider opting for coverage that accounts for business losses caused by the downtime associated with a cyberattack. 

Protect Your Busines with Cyber Liability Insurance from Freedom Insurance

We offer comprehensive, customized coverage from numerous major insurance carriers and make it easier than ever to find affordable policies that are exactly what you need. We have been serving clients throughout the greater Howard County and Carroll County areas since 1979, and we look forward to helping you and your family thrive. Get in touch today by calling (410) 795-2000 or requesting a free quote.