As technology continues to evolve and dominate today's business world, so do the dangers of cyber crime and data breaches. If you are a business owner, protecting your data, and that of your customers, is more important than ever before. Do you have enough protection? Read on to learn more about what you need to know about cyber liability insurance.
What is Cyber Liability Insurance?
Cyber liability insurance has been around for the last decade, but many businesses are not as familiar with this form of protection as they should be. Cyber liability insurance offers policyholders coverage in the event of a data breach or cyber crime that compromises their information. Like most forms of insurance, most companies offer different levels of coverage depending on your needs and where your business is located.
Cyber liability insurance may include the following:
Third-Party Liability/First-Party Coverage: This coverage protects you (the business owner) from potential liability in the event of a data breach. If your customers' personally identifiable information (PII) is compromised, this coverage can help reimburse you for expenses related to:
o Legal defense and counsel
o Digital forensics team
o Costs of notification
o Crisis communication
o Credit monitoring for individuals affected
Worldwide Coverage: Provides policyholders with protection anywhere in the world. Provides access to Travelers' network of forensics, legal experts, and crisis communications.
Distinct Insuring Agreements: Offers separate insurance coverage for distinct risks. This coverage is good for companies that want more liability coverage in one distinct area, while less coverage in others may be suitable.
Extended Reporting Period: Extends the typical 90 reporting period for a data breach. Provides security breach and crisis management expense coverage. This coverage is important because many businesses are unaware of a data breach immediately.
Business Interruption Coverage: This insurance provides policyholders with coverage for lost revenue and expenses caused by a computer virus or denial-of-service attack.
Do I Need Cyber Liability Insurance?
Have you ever had an email send to the wrong address? Lost a laptop or mobile device? Had your system hacked? Hired the wrong employee? These are only some of the reasons why business owners need cyber liability insurance. When you store vital information like bank records, Social Security or tax information, credit card numbers, or any identifiable information, you run the risk of being compromised by cyber crime.
The unfortunate reality is that even a small data breach or cyber crime attack can have a devastating impact on your business. Without adequate coverage and protection, your business could suffer in the following ways:
Fines and penalties
How Do I Know if I Need Cyber Liability Insurance?
The best way to determine if you need cyber liability insurance, or determine if your current policy is really protecting you, is to contact Angelo Law Firm, PLLC. Let our skilled cyber law attorney help you be certain that your business is prepared in the event of a data breach or cyber crime. Contact Angelo Law Firm, PLLC today by calling our office at (832) 356-4484.