Cyber Liability Insurance
You’ve probably read the headlines: large companies are frequently exposed to data breaches, hacking incidents, and network failures. Companies can face hefty fines and expensive legal settlements in such cyber liability cases – not to mention losses resulting from the damage to a brand’s reputation. But this problem isn’t just for major companies. Your small business could also face cyber risk.
That’s why we have Cyber Insurance coverage, which protects businesses from the increasingly sophisticated and complex threats that are prevalent in today’s tech-driven society. Read on to find out more about this type of coverage, and if it’s right for your business.
What Is Cyber Liability Insurance?
Cyber Insurance coverage can cover a broad range of information security-related claims, including data breaches, network failures, and media or content liability.
Many small business owners dismiss this insurance as something that only big companies have to worry about. The truth is, however, that there are thousands of small businesses handling sensitive information that could be exposed, leaving them liable to numerous claims. All it takes is one breach to cost your business seriously, whether it’s as sophisticated as a hacking or as simple as an employee’s laptop being stolen.
Any business that handles sensitive customer information, like credit card numbers, is at risk. If it happens to you, a breach or network failure could wind up costing your small business to the tune of hundreds of thousands of dollars.
Furthering the case for Electronic Data Liability Insurance, most states in the U.S. have laws that make data breach notification mandatory. Notification can quickly become very expensive, especially if you need to communicate with thousands of customers via mail, making this type of insurance an affordable way to comply while mitigating costs. As data breaches become more and more common, this insurance will grow to be just as vital to small businesses as policies that protect them from things like fires, floods and vandalism incident