Cyber liability insurance can be an excellent way for cannabis businesses to protect themselves from security breaches. Cannabis cyber liabilities insurance policies are generally more affordable than other types of business insurance and offer coverage that isn’t included in your typical policy package.
Why do you need cyber liability insurance? Because cybercrime is one of the fastest-growing crimes in the United States, with an average cost per incident of $3 million in losses. And because every year there are more data breaches than ever, having this type of coverage is essential if you want to protect your company from being hacked or exposed.
Many businesses are at risk of being caught off guard.
Data breaches are on the rise and are no longer just theoretical threats. In the first quarter of 2019 alone, over 6 billion records were breached by hackers. Businesses that suffer a data breach can be held liable for any harm that results from their negligence. This can include lawsuits, fines, and lost revenue due to customers choosing another company for their goods or services.
The consequences of not securing your data in this context are more than just financial; they’re potentially life-changing for employees who have had their personal information compromised as well as customers who have been wronged by fraudulent activity resulting from a breach in security systems at your company or its vendors’ facilities where your data was stored at some point in time during its processing cycle before reaching its final destination.
Most business owners don’t think about insurance coverage until something happens.
For most business owners, cyber liability insurance is an afterthought. You probably have other things on your mind, like getting your business off the ground and keeping it going. But if you don’t have insurance coverage to protect against cyber risks or inadequate coverage, you could be putting your entire business at risk.
Here are some of the reasons why all business owners should consider purchasing cyber liability insurance:
- If something happens to your data and no one has been protecting it with cybersecurity strategies, who will pay for any losses?
- Will it be a lawsuit from an unhappy customer?
- Or will it lose customers because they don’t trust you anymore?
With cannabis cyber liabilities coverage, those liabilities are covered so that they don’t become burdensome financial issues for you as well as a threat to the reputation of your company.
First-party and third-party coverage.
Cyber liability insurance policies often include first-party and third-party coverage. First-party coverage is for the costs associated with a data breach, including investigation, notification, credit monitoring, and legal fees. Third-party coverage is for the costs associated with a data breach that affects a third party.
This type of cyber liability insurance will help you get through the following:
- Data breaches
- Cyber extortion or blackmail schemes
- Lawsuits filed against your company due to cyberattacks
They may only cover some of what you need.
- You should have a cyber liability policy.
While insurance should be the last line of defense for any business’s cybersecurity needs, some gaps need to be filled with additional policies.
- You should also have a business interruption policy.
A business interruption policy is an optional add-on to your cyber liability insurance that covers loss of revenue due to unpredictable events like natural disasters or hacking attacks on your computer systems or website.
In short, cyber liability insurance is an essential part of staying safe in today’s digital environment. It can protect you from lawsuits and fines related to data breaches and financial loss due to identity theft or fraud.