Is Cyber Protection Mandatory?

Most businesses like to keep their costs down by cutting as many corners as legally possible. This is especially evident in the insurance department. Although it’s nice to have the protection that policies offer, the cost drives some businesses to only take the minimum coverage of what is required. Unfortunately, this may leave a lot of your clients unprotected in some vital areas. Cyber risk is one area that may get overlooked simply because businesses do not see it as mandatory.

 

Investing in Business Protection

 

It’s true that a cyber liability policy is not required for business operation. However, it’s important that your clients’ understand that investing in such a policy is like investing in business protection. How likely are customers to make purchases on an unsecured web site that shares private information with third parties? If information is stolen, how will your clients stay financially viable when dealing with a lawsuit?

 

What Will Their Customers Think?

 

If customers do not feel that their information can be protected, they are likely to take their business elsewhere. While cyber liability policies may not be mandatory, the cyber risk online businesses face necessitates some form of protection for the sake of the customer’s peace of mind. A broker can help you tailor a policy to make your client more comfortable with the cost while understanding the need of such protection. While some policies may not be mandatory, they are still good for business.