Any business, regardless of the industry, needs to have a good reputation. It comes with a lot of benefits and paves the way for success, bringing a loyal following and making a business stand out from the competition.
The tricky part is that it takes a long time to build a good reputation, and just a single crisis can have a significant impact on the image of the business. And once the reputation is ruined, it is hard to bounce back and it can even lead to a business shuttering its doors.
That’s why it’s crucial to ensure that businesses are protected from risks that can tarnish their reputations, and the key is to determine reputational risks and know how to mitigate them. This is where having insurance policies that protect reputation come in. Here are some of the things business owners need to know about their online presence:
Protect against Cyber Liability
A data breach or cyber attack is a common risk that can tarnish the reputation of any business. While the General Liability insurance covers risks related to property damage and injuries incurred, it is not enough to protect against cyber attacks or exposures including data breach, system failure, rights to intellectual property, and system failure. Cyber Liability insurance protects against these risks and exposures that are not usually covered by the General Liability insurance.
Coverage varies depending on the level of exposure
Businesses have different needs when it comes to the type of coverage for reputation insurance. It’s best to consult an insurance agent to help determine the areas for potential risks and come up with a policy that suits the business needs.
Reputation insurance can come with coverage for losses related to extortion, data breach or management of a privacy crisis, as well as network security.
Saving the reputation after a cyber attack
Business owners can do various things to protect the operations against cyber attacks, but in the unexpected event of an exposure, there are several ways to maintain the reputation and keep the business afloat:
- Maintain transparency – Nothing good comes from telling a different story. Stay on top of the situation by telling the public what happened right away and be truthful about it. Otherwise, it can result in further negative attention. Also, share the information of the cyber attack with stakeholders and employees.
- Share the steps taken to deal with the situation – Send a message of apology and share the strategy to solve the problem and how to prevent it from happening in the future.
- Assist the customers – In case of a data breach, take the necessary steps to help the customers to preserve the relationship. For instance, make it easy for them reach out to the business in case they have questions about what happened.
Downtime and lawsuits due to cyber attacks or exposures can leave a huge dent to the finances of the business. Consider buying insurance that will provide adequate coverage against claims or class-action lawsuits associated with a cyber attack. In case an unfortunate event such as a data breach occurs, be proactive in sharing the details to other people and be transparent about the incident.
Sarah Mueller is a marketing manager at CoverWallet, a tech company that makes it easy for businesses to understand, buy and manage insurance – all online and in minutes.