What is it?
Your data is a significant asset to your business, but it’s not covered by your personal property insurance (although its value is often higher than the equipment itself!). Networks and computer systems are targets for hackers, which put your business at high risk for a data breach, virus or other type of cyber-attack. Cyber liability will help your company to recover if a data breach were to occur.
Why do I need it?
If your business stores personal or sensitive data, such as name, birthday, credit/banking info and social security numbers, then you should have cyber liability insurance. It will allow your company to respond responsibly and effectively to a data breach and help cover your costs.
What type of businesses need cyber insurance?
Cyber insurance is important for both big and small businesses. Often, small companies think they are unlikely to be hit by a cyber attack. The truth is, if a small business falls prey to a cyber attack, they are unlikely to have the financial resources to rebound well. This is where cyber insurance is beneficial. It is estimated that hackers may even target small business more often because they assume that small companies have less security measures in place, making it easier to steal information.
What does cyber insurance cover?
You may have the option for your coverage to include expenses related to cyber extortion or “ransomware”, along with covering expenses for restoring lost data. Your policy could include coverage which helps your company defend themselves against lawsuits and legal claims. It can also include coverage that pays for expenses such as credit monitoring, repairing damaged equipment, business interruption costs, public relations costs, and more.
It’s important to discuss your specific business needs with an agent to help decide what coverage is beneficial for your situation. We offer complimentary consultations.