The Perks of Having Cyber Liability Insurance

It’s rare in this day and age for a business to not use a computer network in some way, shape or form. Your business might be no exception, either. Still, any use of a computer or data network is a liability, and it’s one that needs to have a proper level of data security in place.

Even if you only use an app to calculate earnings or ring up purchases, this data is information that is vulnerable to loss or theft. If it becomes compromised, then you might not only lose your own sensitive information, but also personal information belonging to others, like your customers. You have to be ready to respond to any such losses.

To receive insurance assistance for such data loss scenarios, consider investing in cyber liability insurance as part of your commercial benefits. Here’s why any business should feel secure taking advantage of the perks of this coverage.
man typing on a laptop

The Basics of Cyber Liability Insurance
If you use computer data in any form in your business—and let's face it, most of us do—then cyber liability insurance is a benefit for you. It’s an essential piece of commercial liability benefits that are designed specifically to assist you in the event that you experience data loss, theft or destruction that could harm both your operations and your customers.

On your computer networks, you might store sensitive information like customer contact information, birth dates, financial information, medical records, social security numbers and other highly private statistics. Should a massive data breach, cyber-attack or other system failure expose or compromise that data, then those whose information you held could face the risk of identity theft, monetary loss and other embarrassments.

What’s worse, those affected by the loss might blame your business for their problems, and they might demand compensation as a result. It’s at this point that cyber liability insurance can step in to assist those affected. It will ensure that:

Your business can respond to data security incidents in ways that minimize their effect on all involved parties. The policy will help cover many essential recovery services so that you don’t have to bear the cost of them out of your own pockets.
Because these incidents might involve third parties, you can use cyber liability policies to compensate them for their losses. You will provide them with the resources they need to protect themselves.

Let's take a closer look at some of the policy services within a cyber liability plan.

Benefits Included in Cyber Liability Insurance
There are numerous costs that might arise from data breaches, which is why cyber liability coverage is designed to cover many different cost burdens. These might include:

Notification Costs
If sensitive customer information were to be stolen from your company networks, you are required by law (in most instances) to notify customers of the issue. Depending on your company’s structure, you might also have to notify certain government entities. Your cyber liability plan will ensure that any costs incurred by making these notifications are paid for.

Customer Identity Protection
Most data breach issues immediately raise concerns about identity theft for those impacted. However, cyber liability insurance policies will offer you the option to provide identity protection services, such as credit monitoring and social security number tracking, to ensure that they never have to worry about someone using their information dishonestly.

Data Recovery
You will naturally want to see if it is possible to recover destroyed or compromised data. After all, if you can get the information back, then your losses might be much lower than they would be if the data was a total loss. This benefit can help you do so, while still re-securing your system for the future.

Extortion Reparations
Cyber thieves might not just steal information, but also might demand compensation (I.e. a ransom) in an attempt to extort money from you. Under a ransomware attack, you might have to consider whether you will have to pay this money in order to recover data. You can receive compensation to allow you to cover these expenses.

Loss of Income
At times, cyber security incidents will interrupt your ordinary operations, and you might be forced to pause your work in order to minimize your losses. If you suffer a loss of income during this period, then your policy can often pay to help you recover the costs.

Legal Assistance
When third parties (I.e. clients) are involved in cyber security incidents, they might hold your business responsible for the losses they sustained. If they were to take legal action against you, then your own legal fees might skyrocket. However, cyber liability insurance can provide you with the compensation necessary to cover these costs.

Various other types of protection might come as part of your company’s cyber liability insurance. Therefore, work closely with your insurance agent to determine the right way to insure yourself in the most expansive way possible.

The Perks of Having Cyber Liability Insurance

No Comments