More than ever before, cyber threats are affecting the financial industry with data breaches and phishing schemes. Companies are responsible for the security of their data, which is why cyber liability insurance is a necessity for any business that is involved in the financial sector.
Types of Breaches and Policy Coverage
With new laws and regulations being set by the government, companies are racing to implement security systems to protect against cyber threats. Breaches can result in damaged systems, leaked information and even manipulated data, all of which are especially bad for financial businesses such as banks or lending companies. The following are the four main areas in which a breach may occur:
The use of copyrighted materials, intentional or otherwise
Cyber attacks with the intent to do harm
A software or system flaw
Negligence on the part of an individual
If any of the above happens, an insurance policy helps your business to notify individuals affected by the breach, recover data, improve public relations and pay for any legal fees incurred. This is why businesses in the financial industry need an insurance policy that immediately responds to cyber threats because of the sensitive information handled by such businesses, according to FGIB.
Making Sure You’re Covered
It’s important to be prepared for cyber breaches in the financial industry. Cyber liability insurance means you can be covered for the worst-case scenario.