With the world becoming more and more reliant on technology, increasing amounts of data are flitting around from server to server. In a 2019 Verizon report on data breaches, researchers found that almost all malware arrived on company computers via email in 94% of cases. As a result, investing in cyber liability insurance for your business can protect you from the financial impacts of security breaches.
Although some small business owners might not view cyber insurance as a top priority, every company is vulnerable to phishing attacks, data loss, ransomware, scams, and more. Because of this, network security liability insurance is a key purchase to address these threats and provide effective risk management solutions.
Network Security Cyber Insurance or Cyber Liability Insurance, helps protect businesses against a variety of risks. Coverage typically includes the financial losses of failing to protect against the theft of customer information during a hack, such as passwords, credit card data, and more, as well as the impact of viruses, unauthorized access, and other malware.
In addition to a standard liability insurance plan that covers property damage, cybersecurity plans provide specialized insurance coverages against any claims incurred in the event of a security breach related to the use of technology and data. Many of these policies are flexible depending on your level of risk, allowing your company to customize its own cyber liability insurance plan.
Although some business insurance policies like BOP can provide limited financial compensation for cyber incidents like data loss from hardware failure or virus infection, you may need to purchase a standalone cyber liability insurance policy to address a wider range of cyber risks.
Depending on the insurance company and cyber security insurance plan you choose, a policy can be designed to cover expenses related to the following:
Any business that stores, creates, or transmits electronic data online, such as an e-commerce store should invest in cyber insurance. This helps protect your business from legal claims related to the loss of customer data, leading to a loss in sales and customers. Having this coverage can protect you from unique cybersecurity risks and potential financial losses.
First-party coverage is designed to minimize the financial impact on the company that bought the. It covers the loss of data and cyberattacks that can occur, which includes the cost of informing affected customers, providing credit monitoring, creating PR and reputation management campaigns, and other data recovery activities specific to your business.
In summary, it helps you respond to a data breach that occurs on your own network or systems.
Third-party cyber liability insurance provides liability protection in the event that the insured company causes a client to suffer a data breach or cyberattack due to an oversight. It is an essential investment for tech companies and IT consultants that could potentially be blamed for any errors that led to a breach. It covers legal expenses for a third party being blamed by another firm.
In summary, it helps pay for any lawsuits caused by a data breach that occurs on a client’s network or systems.
Due to the rapidly changing nature of technology, it is crucial to take immediate steps to protect your data and your computer systems. One way to limit your cyber liability risks is to stay on top of installing, maintaining, and updating your company's security software and hardware. In addition, strictly follow a data privacy policy and regularly back up any data at a secure offsite location.
For more information on choosing the best cyber insurance coverage for your needs, contact us at Assured Standard today to keep your business safe from data breaches!
