Why Every Business Needs Cyber Liability Insurance in the Age of Remote Workers

For many businesses across various sectors, cyber risks and exposures have increased significantly in recent years. These changes can be chalked up to various workplace modifications, including more frequent use of electronic devices and online communications. One particularly relevant change throughout much of the business world that has created new cyber risks or exacerbated existing concerns is the rise of remote work.

How Does Remote Work Impact Cyber Coverage Needs?

Working in remote or hybrid environments has become a popular perk for many employees and may also offer financial advantages and attraction and retention boosts for businesses. However, these arrangements also entail new or modified risk profiles, especially when considering cyberattacks and data breaches.

When employees work remotely, employers may have less control over their cyber risks and cybersecurity measures. Specifically, employees’ home Wi-Fi networks are often far less secure than a business’s office environment. Additionally, remote workers may choose to work from public areas, such as coffee shops and coworking spaces, potentially further exposing company data on unsecured or unmonitored networks.

Businesses should also be mindful of the risk of allowing employees to work on personal devices, which may often go hand in hand with remote environments. Like employees’ home networks, their own laptops, tablets and smartphones may lack the same security features as those issued by their organizations.

Given these circumstances, the coverage offered by a cyber liability insurance policy may be especially critical, as cyber criminals may have greater success when attempting to perpetrate malware infections, data breaches and other attacks.

How Can Cyber Liability Insurance Help?

Cyber liability insurance can offer extensive and versatile financial protection in response to incidents involving both on-site and remote employees. If a breach occurs, a business’s policy might help reimburse it for lost revenue due to network shutdowns, as well as legal expenses should affected parties file lawsuits. Additionally, payouts may help pay to hire IT contractors and public relations firms as businesses try to blunt the impact of an incident and get back on track with minimal losses.

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Contact Action Plus Insurance today to discuss cyber liability insurance for remote businesses or get a free quote.