Cyber Liability Insurance Basics
Cyber Insurance is a necessity for many small business these days. With cyber attacks becoming more common, it’s important that you take steps to protect your business. But before you decide to get a cyber insurance policy, it’s a good idea to understand the basics.
What is Cyber Liability Insurance?
Cyber Insurance is a form of liability insurance. It helps protect your business from a data breach. It helps keep your business and your employees safe in the event that digital data is stolen from you. If you face a data breach and your company is found to be liable, then you may be facing an expensive lawsuit, Cyber liability insurance helps to mitigate some financial risk.
What does a Cyber Liability Insurance Policy Cover?
There are three different coverage types. They are:
- Security Breach Liability Coverage
- Privacy Breach Liability Coverage
- Breach Notice Response Service Coverage
What is Security Breach Liability Coverage?
Security Breach Liability Coverage helps to cover your legal liability for damages that are a result of failure from security measurements to keep out unauthorized access of your computer systems. There are different ways that this could happen. If one of your employees accidentally losses their laptop and someone finds it and proceeds to steal the information on it, there is a security data breach. Or, a hacker could break into computer system and steals your information. Basically, security breach liability coverage helps to cover stolen data from your computer due to failed security measures.
What is Privacy Breach Liability Coverage?
Privacy Breach Liability Coverage helps cover the damages and liabilities associated with loss of sensitive personal information. An example could be if a client’s personal information was stolen during a security breach and their personal information was used to create a fake credit card. Other examples include:
- Breach of someone’s right to privacy
- Intrusion of a person’s seclusion
- Public disclosure of someone’s private information
With privacy breach liability coverage, your company can help cover the costs assicoated with privacy breach. Whether the lost information is physical or digital, this type of insurance coverage will help protect your business from some of the costs.
What is Breach Notice Response Service Coverage?
Breach Notice Response Service Coverage is important if your company faces a security breach. It helps cover the costs of informing your customers that a security breach has happened and that their data may have been compromised. While regulations vary from state to state, you may be legally required to notify your customers that their information is at risk. These regulations are good as they keep your customers up-to-date, but sending out mass notifications can be expensive. Breach Notice Response Service Coverage helps your company deal with those costs.
What’s the best way to prevent a security breach?
Most small business fail to have strong security measures in place to prevent data breaches. Because of that, hackers will often target small business for information. Though you may think your business is completely safe, one data breach can be devastating. Your online records can be stolen even if you do a lot of your business on paper. There are a few easy ways to prevent security breaches:
- Get Cyber Liability Insurance
- Create strong and secure passwords for each user
- Keep all your computers up to date with the latest software
- Educate your employees
- Watch out for scams
- Talk to an expert
If you want to know more about how to prevent breaches from happening, see How to Protect Your Business from a Cyber Attack.
However, Even if you take measures to protect your small business, sometimes your data can still be compromised. That’s why it’s never a bad idea to get insurance coverage. Unfortunately, these types of incidents occur frequently. Doing what you can to financially protect your business in case it does can make s huge difference in the future. The best way to determine the coverage you need is to speak to your insurance agent. They can help you figure out the best policy for your commercial business.