Do freelancers need cyber liability insurance?
Cyber attacks can come from anywhere in the world, even coffee shops. And they can happen to anyone, even freelancers. The number of cyber attacks has skyrocketed over recent years, as a new wave of criminals has been born.
Unfortunately, freelancers are often more vulnerable to cyber attacks because they lack the same cyber security that bigger companies have. Freelancers often work on their own computers from home– or worse, out and about– without the same security precautions as an employee at a large company.
Many freelancers have no security procedures at all, which can make them an easy target.
Your computer is most likely your livelihood. A cyber breach or attack could cost you valuable work time while trying to fix the problem. Worse than that, it could damage your reputation and even open you up to litigation if one of your client’s data is compromised. That’s why you should think about getting cyber liability insurance.
Read some words of wisdom from the experts: Cyber Security Tips for Freelancers.
Types of cyber attacks
The top means of cyber attacking in 2016 were phishing and malware. What’s phishing? Here’s a hint: it’s not following Phish (the band) or eating Ben and Jerry’s Phish Food.
Phishing is when criminals steal information by sending emails that seem like they’re from a trusted source. If you click on the phishing link, it will download malware onto your computer.
Increasingly, the malware downloaded by phishing is ransomware, which is a type of malware that infects your system and holds your data for ransom.
There were nearly 4,000 attacks every single day in 2016.
You can protect yourself from cyber criminals
Cyber criminals are ever-evolving, and despite every precaution, you could be the victim of a cyber attack. Fortunately, there are options to protect yourself and your business against these cockroaches of the internet.
Many insurers now offer cyber liability insurance for freelancers that can help you in the event of an attack. The policy is geared toward helping freelance workers who deal with clients’ digital data. This could be credit card information or any other kind of data that is in your possession that should be kept secure.
How does cyber liability insurance protect freelancers?
Once your data has been compromised, you can’t get it back. It may even take weeks before you realize– and the damage will already be done. That’s where cyber liability insurance comes into play. It helps pay for the expenses associated with a data breach.
Here are a few examples:
- Legal expenses. Clients may have grounds to sue in the event of a data breach. Even if you settle, you’ll need a lawyer to present your case. Cyber liability coverage can help with the legal bills, as well as any judgements or settlements.
- Cyber extortion expenses. This is when a cyber criminal holds your information hostage for money. Your cyber liability policy can help pay the ransom.
- Client notification. Post-data breach, you’ll need to notify clients whose information has been compromised.
- Credit monitoring costs. Offering credit monitoring services to your clients can restore their faith in you, and cyber liability insurance can help you pay for the nice gesture.
- Reputation management. In the event of a breach, your reputation could potentially be ruined. But cyber liability insurance can cover the costs of a good-faith marketing campaign.
How much does cyber liability insurance cost?
The good news is that basic cyber liability policies can be pretty inexpensive, though the price can vary. But keep in mind that the right cyber liability insurance protection can save you a lot of money in the long run if you happen to experience a data breach.
When it comes to protecting your clients’ data, it’s better to be safe than sorry. And it’ll cost much less than the cost of a cyber attack.