In today’s business world, you would be hard pressed to find a company that does not use computers to send, receive, or store electronic data. Types of data stored might include sales projections, tax records, and other information owned by your business. If the data is lost, stolen, or damaged due to a security breach, it could be very costly to replace or restore.
Not only do you have to worry about your data, but customers’ info as well. And the sad truth is cyber attacks are a reality of doing business in a connected world, and the frequency and intensity with which they occur are rising. It’s an attack that you can’t predict when it will happen, how it will happen, or who is it behind it. In May 2017, the WannaCry ransomware attack affected up to 300,000 computers in 150 countries, making it the most massive such attack to date, with costs estimated at around $4 billion.
The good news is, there are ways you can protect your business and your clients. And that is with a Cyber Liability insurance policy.
Protecting Your Business with a Cyber Liability Policy
The Balance Small Business recently published an article regarding the importance of this coverage. Cyber liability insurance covers financial losses that result from data breaches and other cyber events. Most cyber policies include both first-party and third-party coverages. Some coverages may be added automatically while others are available “a la carte.”
First-party coverages pay expenses you incur as a result of the breach, such as the cost of informing your customers about a hacker attack. Third-party coverages apply to claims against you or your business by people or companies that have suffered a loss as a result of your actions or failure to act. Let’s look at an example. A client sues you for negligence after a hacker steals his personal data from your computer system and releases it online.
Our team at Paradiso Insurance understands cyber exposures, and we know how to protect you from the devastating costs associated with them. We work with several top-notch insurance companies to make sure your business insurance doesn’t have any gaps—including gaps related to cyber risks—and that your customized insurance program represents the right fit at the right price.
We’ll explore how the following coverages might fit with your particular business needs:
- Coverage for legal fees and investigative or forensic costs associated with a security or privacy breach.
- Fines you might incur as the result of a cyber-related event.
- Expenses associated with notifying customers after a breach occurred—everything from legal costs and credit monitoring to advertising and postage.
- Comprehensive coverage for interruption expenses, including income loss.
- Coverage for damages third parties may experience as a result of a network security breach.
- Protection against losses resulting from cyber-extortion and cyber-terrorism.
The Bottom Line
If your company uses technology in the course of conducting business, you face a cyber risk. The threats are growing, as are regulations that address how you handle data and what happens if it’s compromised. The worst thing you can do is ignore the risk. Our cyber liability insurance experts can help you determine the best coverage and offer advice on other ways to protect your business. Don’t hesitate, contact us today!