Cyber insurance is a must to keep increasingly valuable data safe in the Cloud or on the World Wide Web.
Companies of all types and sizes can fall victim to cyber-attacks. From Google to Target, no company is too big, and even those with generous digital security budgets are hit. However, no company is too small either. It’s a myth that cyber criminals simply aren’t interested in SMEs or businesses in specific sectors, like real estate.
Real estate agents have to face cyber security risks on a daily basis, including financial fraud, exposure of private customer information and so forth. Cyber criminals can ruin a realtor’s business, as many do not have the financial resources to withstand the losses – whether they be financial or reputational.
Better safe than sorry on the net
Although opting for cyber insurance may seem too expensive, it is far cheaper in the long run than the costs associated with recovering from a breach. Real estate agents put their heart and soul into their customers. Having cyber insurance to protect them and ensure their businesses can help them carry on in the event of a security event. In fact, cyber insurance should be seen as a ‘must have’, not an expensive option.
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Bear in mind that a company’s information is its most valuable asset and isn’t covered under general liability in insurance policies. Data is also more often than not what hackers are after. What happens to a business should its data be lost or stolen? Cyber insurance provides full coverage in this event, including data restoration costs.
Another important factor to remember is that system downtime isn’t covered by most insurance policies. If your organisation is dependent on computers, servers and other digitally-enabled systems, an event that prevents you from sending and receiving data could be disastrous.
Retain your reputation
Remember that a company’s reputation is a top priority and can be damaged in a heartbeat. This is clear from the headlines that have littered the news. A good reputation is crucial to keeping the doors open. So, why not insure yours?
Even though some risks to reputation can’t be insured, real estate agencies can insure their reputations in the event of a security incident. Remember that the expense of rebuilding your reputation following a breach could be massive. Once your business has been compromised by attackers, your customers lose trust, which can be more harmful in the long run than a financial loss only.
Cyber insurance would cover the costs of bringing professionals in to help mitigate the damage and rebuild your reputation.
Another area in which cyber insurance can help is in managing regulations and governance requirements. Complying with breach notification laws is a costly and time-consuming exercise.
Businesses need to be aware of any applicable laws and have to notify customers should a breach take place. Cyber insurance helps cover those expenses.
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Stay safe in a social world
Finally, social media is bringing a whole new slew of claims. A burgeoning phenomenon, social media is the fastest growing interaction platform in the world. Information is shared and exposed at the click of a button, but there is very little control over who says what, what they say, and how they say it.
A staff member could inadvertently share confidential or sensitive information on a social media platform and the business could be held liable. This could include copyright infringement, or a slanderous statement. Cyber insurance can help provide cover for any claims arising out of this type of incident.
Given the multitude of risks that today’s real estate agencies face, the chances are more likely than not that your company might suffer a breach or cyber-attack. Without cyber insurance your business simply won’t be covered.