Does Your Business Need Cyber Liability Insurance?
Today, most enterprises rely extensively on the Internet. While the expansion of online commerce created exciting new opportunities for businesses, it has introduced some significant risks. Every month, around the world data breaches, resulting in thefts of company assets. The newly emerging field of cyber liability insurance helps protect injured businesses and third parties against damage resulting from this type of harm.
Who Needs Cyber Liability Insurance?
A single data breach may result in the theft of valuable intellectual property. Typically, companies seek cyber liability insurance to cover both their financial losses and the costs of compensating injured third parties. These types of security lapses impose hardships upon customers and vendors who may have entrusted injured businesses with sensitive information. For example, sometimes cyber-criminals use data breaches to obtain personal information to sell to identity theft rings. Companies victimized by data breaches risk losing customer goodwill and trust as a result of these intrusions. A breach may damage a firm’s public image.
How Cyber Liability Insurance Coverage Works
Numerous enterprises maintain general liability business insurance policies. Yet insurance companies frequently exclude cyber liability coverage from the scope of this protection. A business may need to purchase a specific cyber liability insurance policy to fully protect itself and its customers.
Types of Cyber Liability Insurance Coverage
This form of insurance varies from one provider to another. Many policies offer five distinct types of coverage. A policy may assist an insured with five costs involved in recovering from a data breach: (1) repairing computer damage;(2) retrieving stolen data;(3) providing notice to third parties about the data breach;(4) paying legal fees and litigation costs stemming from the breach; and (5), assisting customers in correcting identity thefts resulting from the violation of their data.
Key Benefits of Cyber Liability Insurance Coverage
Obtaining this type of insurance protection today proves vital for numerous enterprises. It may permit the victim of a data breach to remain in business. Consider obtaining this important type of business insurance!