Cyber Insurance Blog

Building Customer and Investor Confidence: Cyber Liability Exposures

Building Customer and Investor Confidence: Cyber Liability Exposures

Show Clients How to Build Confidence in Their Brand with Cyber Security

According to a recent study, 75% of consumers will not purchase from a company they believe cannot protect their data, no matter how great the products are. To build trust among consumers and investors, it’s crucial for businesses to demonstrate they are taking active steps to manage their cyber liability exposures. Brokers can communicate this to their clients to explain the importance of comprehensive cyber liability insurance. Learn how cyber breach management helps your clients build trust with both customers and investors.

How to Build Trust with Customers and Investors

Clients should understand that demonstrating preparedness for a cyber attack builds trust with both customers and investors. It’s important for businesses to show the concrete ways they’re managing cyber liability exposures. Here are a few of the ways businesses can prove they’re ready for whatever comes at them:

Get the right coverage

Cyber-Liability-ExposuresHaving an insurance policy that addresses the right cyber liability exposures is critical for businesses to prove they can survive a cyber attack. General liability insurance policies are typically not designed to cover a cyber breach, so getting proper cyber liability insurance is a great way for businesses to boost confidence among consumers and investors.

Train staff in cyber security

Cyber breach management needs to be holistic. Businesses that train their staff to be able to prevent and respond to cyber attacks look much more secure to customers and investors, and for good reason.

According to the Enterprise Phishing Susceptibility and Resiliency Report, 91% of cyber attacks start with phishing emails. Employees who are untrained in cyber breach management may be more likely to accidentally open one of these malicious emails, exposing his or her company to a cyber attack. Companies that train their staff for these situations show they’re serious about addressing their cyber liability exposures.

Be transparent with customers

Customers trust businesses with their data more if they know how that data will be used. Giving customers some input into the process is an effective way to provide transparency and build trust among customers in the long-term.

Communicate with investors

Stakeholders want to know that the businesses they invest in are managing their cyber liability exposures. One of the best ways to convey this is establishing open communication with investors about cyber security. And rather than just tell them, it’s better for businesses to show them they take cyber security seriously. There are several ways to do this, including:

  • Conducting a readiness assessment
  • Developing a response plan
  • Automating parts of a cyber breach response
  • Installing a notification system

By showing investors they’re taking active steps to limit their cyber liability exposures, businesses can inspire long-term confidence in investors who will recognize and appreciate the ability to respond to a cyber attack in real time. A comprehensive cyber liability insurance policy also shows investors that the business will be able weather a cyber attack and quickly recover.

Insurance brokers who can communicate the importance of managing cyber liability exposures are more successful at placing cyber liability insurance policies with clients. To learn about how ProWriters can streamline that process for you, book a call with our experts today.

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