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Why Cyber Insurance is Important for Businesses

Why-Cyber-Insurance-is-Important-For-Businesses

Whether you own a small start-up or an established corporation, cyber insurance is still an important consideration. In today’s world, using the internet to conduct business is unavoidable. However, anytime your business is connected to the internet, you are also at risk. For this reason, you need the protection provided by cyber insurance.

What Is Cyber Insurance?

Cyber insurance policies are designed to help you protect your company from liabilities related to its connections to the internet. In most cases, these policies apply when a company sustains a loss related to a cyber attack.

Cyber attacks occur when hackers or other criminals break into your company's system and/or database to commit crimes. For example, hackers may steal your data, destroy your system or even hold your operations hostage unless you agree to pay a "ransom." In the majority of these cases, the company will experience significant financial loss because of the attack. Cyber insurance will cover some or all of the associated expenses, allowing your company to recover more quickly. 

Cyber liability insurance policies vary, but most of these policies will cover the cost of your business losses, associated investigations, legal expenses, cyber extortion and expenses related to privacy violations. 

Purchasing a Cyber Insurance Policy

Not all cyber insurance policies provide the same coverage. For this reason, it is important to compare your options. When reviewing different policies, you need to consider:

  • Structure of the policy - Cyber insurance policies may be issued as stand-alone coverage, or they may be an extension of another policy. In most cases, stand-alone policies will be more comprehensive. 
  • Limits - All cyber insurance policies impose limits on the benefits you can receive. The higher the limit on the policy, the higher your premium will be. However, higher limits also offer more security for your company. 
  • Deductible - The policy's deductible is the amount you must pay for your covered expenses before the policy will kick in. Lower deductibles require higher premium payments, but your company won't have to pay as much out-of-pocket in the event of a claim. 

About Axis Insurance

At Axis Insurance Services, we aim to help our customers identify their exposures and protect themselves. Founded in 1999, we offer insurance programs to a wide variety of professionals and industries including attorneys, real estate, healthcare, architects, and more, and also have a wholesale division. We pride ourselves on offering flexible insurance coverage tailored specifically to each customer’s needs. To learn more about our solutions, contact us at (201) 847-9175 to speak with one of our professionals.

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