In today's business environment, every organization uses technology daily. Every organization stores some form of valuable data: customer records, payment information, patents, designs, blueprints, confidential documents, and so on. As the amount of valuable data in storage increases, the incentive for criminals to steal this information rises as well. (If notorious bank robber John Dillinger was alive today, he'd be a hacker instead, and carry a laptop instead of a tommy gun.)
Information breaches are a reality in today's business world. In the event this data is breached, businesses must not only compensate their customers, but also repair internal technology and policies to prevent future breaches.
Cybersecurity insurance is designed to cover a spectrum of costs associated with hacks, ranging from reputation loss to the costs of restoring, updating, and replacing affected equipment.
Cybersecurity liability insurance is designed to protect businesses from the financial consequences of data breaches. Cyber attacks may come from state-sponsored computer experts, terrorists, criminals, activists, and even corporate insiders. Instead of money, cyber attackers steal information to sell on the black market.
Cybersecurity insurance for liability and business continuity purposes is a necessity in today's business environment.