Reggie Dejean Director of Operations View Bio

cyber liability insurance

Data breaches have been occurring more frequently, and it is not just happening at large big-box retailers. In fact, most cyber attacks target businesses with less than 250 employees because their security may be more vulnerable. So no matter the size of your business, it is important to manage the risks related to a data breach and reduce the significant costs that can result from one. Now might be the time to explore how cyber security insurance may protect your business.

Standard business and property insurance does not cover certain information or data, which includes, but is not limited to, your customer information like social security numbers, credit card numbers or other Personally Identifiable Information that could be valuable in the wrong hands. Cyber intrusion insurance may be able to cover the event of a data breach.

Cyber liability insurance can also cover the cost if your business is down due to a network disruption or system error. If your business was not able to take orders or collect any payments due to your system being down – cybersecurity liability insurance could cover this disruption and the subsequent loss of profits due to a system fail caused by any virus or an attack.

Below are a few reasons why you should consider cyber liability insurance for your business:

It probably covers more than you think
Many cyber security policies offer “first party” coverage, meaning they will pay you for things like business interruption and the cost of notifying customers of a breach as a result of a cyber-attack. Without this insurance, you could be held liable and face severe penalties.

You are protected if your cloud provider messes up
If your website is hosted or stored in the cloud, you’re still legally responsible. You can’t fully control the way in which a cloud provider handles your data, but this insurance policy can protect you if your cloud provider makes any mistakes.

Social media sites expose information with little control
Your business site and your employees activity on social media can trigger liability if your business is responsible for the sites. Defamatory statements, leaked information and copyright infringement can all be covered with a Cyber Liability Insurance policy. Losing the trust of your customers can be much more damaging than the financial loss you will incur to repair the effects of the breach.

Cyber liability insurance has been available for almost 10 years, however, it’s rarely purchased. The data and information of your business is probably worth much more to you than the equipment on which it is stored.

If you’d like to see how a Cyber Liability Insurance policy could help protect your business, talk to one of our specialty insurance team members today for a free assessment.

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