Recognising and addressing the threats are extremely important for businesses to grow continuously. Along with the rising competition, social perception, and new laws and regulations, businesses need to address the growing threats in terms of data security, natural disasters, and the financial consequences of advertising injury, property damage, and more. Along with good risk management practices, businesses need to include commercial general liability insurance policies and cyber security insurance as a crucial part of their risk management strategy. Let us understand how CGL insurance and cyber risk insurance can help in addressing the growing threats to businesses.
What is CGL insurance?
A commercial general liability insurance policy is an important business insurance that is designed to provide financial protection to businesses against various risks and liabilities. It offers coverage against financial losses and liabilities arising from various claims such as property damage, bodily injury claims, advertising injury, products, and operations.
How does CGL insurance help businesses address growing cyber liability threats?
The following are ways in which CGL insurance helps businesses to address the growing threats:
- Accidents are unexpected and inevitable. Even with robust security measures, accidents can still happen in the workplace. CGL insurance provides coverage for claims arising from third parties related to bodily injury or property damage suffered. For example, a legal claim can come from an injured customer for accidental falls or slips at your business premises.
- CGL insurance also provides tailored coverage for advertising injuries such as libel, slander copyright infringement, etc. It also gives additional protection against the losses arising from harm caused by faulty products and completed operations.
- CGL insurance provides coverage for defending lawsuits by compensating for attorney fees, legal defence costs, court settlements, and other related expenses. Financial protection given by insurance helps business to maintain financial stability and continue to operate without hassles.
- Having CGL insurance also gives assurance to the customers, vendors, and partners that the business is responsible and it also builds customer trust.
- As the risks are evolving, CGL is offered with more extensive coverage. This includes add-ons like cyber liability coverage and other risks covered by the riders.
These insurance policies are great risk management tools for businesses to overcome any potential challenges. You can customise the coverage and choose the policy type – CGL policy occurrence or claims-made basis, depending on the needs of the business. However, CGL insurance may not provide extensive coverage for cyber security risks which are a growing threat to any businesses today. Businesses need to consider availing a separate cyber security insurance to have complete protection against the growing cyber risks.
What is cyber liability risk insurance? How does it help businesses?
Cyber risk insurance helps businesses by offering them financial protection against the liabilities arising from cyber-related incidents. This includes cyber-attacks, data breaches, cyber extortion, etc. Here is how it helps businesses to overcome rising cybersecurity challenges:
- Cyber insurance helps businesses by giving them financial protection against the losses that may arise from cyber risks. This includes the losses suffered, legal fees, regulatory fines, etc.
- Cyber insurance promotes the implementation of better risk mitigation and management practices by offering coverage at reduced cost.
- It also helps businesses with the right type of resources to manage any reputational damage caused by cyber risks. Crisis management support offered by insurance companies can help businesses to manage the consequences of cyber incidents.
In today’s digital world, cyber risk is continuously evolving. Hence, businesses need to have the most comprehensive coverage. It is crucial to assess the risk properly and then choose the right coverage suitable for the business. Policy specifications such as scope of coverage, exclusions, and other terms need to be keenly understood before opting for any cyber insurance policy.
Conclusion
To sum up, both CGL insurance and cyber liability insurance are important aspects of risk management for any business to overcome the rising challenges. Having financial protection against various risks and liabilities gives businesses a boost and focus on the continued growth of business.
