If your business is hacked, your customers’ and employees’ personal information, such as Social Security and credit card numbers, are exposed and stolen. This opens your business up to liability. Cyber security insurance covers liability and property damage associated with engaging in electronic activities. Security failures, data breaches and other cyber-crimes are becoming more prevalent. Your business’s reputation becomes tainted and your customers and employees are put at risk in the event of an attack.
Cyber liability insurance mitigates losses from cyber incidents. These incidents include data breaches, network damage and business interruption. It protects your company from liability associated with these attacks. It helps your business pay for breach expenses. It costs money to notify customers and provide credit monitoring services.
Most states require that customers be notified of data breaches that involve personal identifiable information. This is a very expensive process. Insurance covers these expenses. It also covers the following:
- Restoration of personal identities of affected individuals,
- Repair of damaged computer systems,
- Legal fees and expenses and
- Recovery of compromised data.
Cyber liability insurance coverage is far-reaching. These expenses could put a company out of business. Insurance is worth the investment.
We live in a world where data systems are run online. When a hack occurs, real damage is done. Insurance helps alleviate costs associated with a breach and can even help pay for reputation recovery.