Don’t Have Cyber Liability Insurance? Here’s Why You Need It

automatic data processing insurance

While hacking is a risk that nearly any business faces, it’s easy to underestimate how sophisticated and devious hackers have become. Yahoo, Experian and Home Depot are just a few of the big-name companies targeted within the last few years. However, even smaller firms can become targets for cyber pirates and other malicious acts. Moreover, data corruption and loss can occur even without hackers involved from causes such as damaged hard drives and power outages. If you don’t already have automatic data processing insurance, now is the time to add it to your coverage.

What Do Cyber Liability Policies Cover?

Typically, cyber liability insurance comes in a couple of different forms: first-party coverage, and third-party defense and liability. The former usually reimburses claimants so they can handle immediate customer and business needs. Third-party coverage is intended to shield the insured party in case a lawsuit is brought against them because of a data breach. Both should serve as integral parts of your risk management plan, to help you stay operational and minimize your losses in case of an incident.

Protect Your Business

You take all the precautions you possibly can to secure your data. Nevertheless, accidental damage and privacy breaches by hackers could still happen. Adding automatic data processing insurance to your package of coverages will help protect your enterprise from massive financial losses.