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Cyber insurance is becoming a necessity for businesses

On Behalf of | Nov 17, 2022 | Insurance Disputes

Although cyber insurance is a relatively new idea, it is becoming more and more popular with American businesses. In fact, many businesses are looking to transfer risk using cyber insurance. One of the main reasons why this has come about is because of how frequent and severe cyber attacks have become and how much businesses have had to pay to respond to incidents, the toll that business disruption has taken and the cost of recovery.

This type of insurance may very well take care of the costs of the cyber attack issues but the downside is that cyber insurance can be extremely costly and many businesses simply cannot afford it. For example, according to one market report, in the second quarter of 2022, the price of cyber insurance increased by 79%. On the other hand, if a business does not have cyber insurance, it is taking a big risk that if something happens, they will have to handle the entire cost on their own.

Business may be in a really vulnerable position

The current situation with cyber risk unfortunately leaves businesses vulnerable, often at a financial loss and facing the potential to lose a lot more, including damage to their reputation. The question is whether cyber insurance is really as necessary as it seems. In most cases, considering the current business climate, cyber insurance is most like a sensible investment. However, there are some measures that a business owner should do so that they get the most out of their cyber insurance and end up not overpaying.

  • Evaluate the business landscape so that they can identify the risk
  • Understand that cyber insurance is not the entire answer, it is one aspect of the solution to their issues
  • Recognize that cyber insurance is worthwhile but that it doesn’t stand alone

Solid legal counsel from an experienced California attorney

If you are in the middle of an issue with your business in which you need to obtain insurance coverage, the valuable expertise of a California attorney can really help your case. Your attorney can stand up with you to the challenges and pitfalls that you may be facing with the insurance company. With the right advice, you will be able to protect your rights and also get what you need to continue to make your business flourish.