Why Your Business Needs Cyber Liability Insurance
Protecting your business from modern threats is complicated. Due to advances in technology, your business needs a variety of casualty insurance covers from companies like Welsh Agency Inc to properly protect it. As a business owner, you may need to acquire cyber liability insurance. If a computer hacker gains access to your system and steals customer information, including credit card numbers, you can face huge liability issues unless you are properly protected.
Cyber Insurance Basics
Data breaches are almost commonplace now. If a hacker does break into your system, a cyber insurance company policy can protect you in a number of ways. For instance, a policy can pay for notifying your customers of the breach, handle the credit monitoring costs, and provide restitution for identity theft. This type of insurance can also cover any government fines that your company may be given. Cyber insurance is meant to protect your business from collapsing due to data security breaches.
Options
Cyber insurance comes with a variety of options that can be quite confusing. The most important choice you need to make when it comes to this coverage is the "limit of liability." A 2011 study shows that the average cost of these data breaches is approximately 5.5 million dollars each. Cyber insurance is generally affordable, so you need to choose a policy that will cover all of your possible exposure. For instance, you should look into prior act coverage. Some companies will not offer this provision when you first take out your policy but may cover you for longer "retroactive" periods later. In short, hackers can be in your system for a long time before they are detected. If their first incursion into your system happened before you had cyber insurance, you could be liable without a prior act provision. Many other coverage options exist. You will need to consult with a knowledgeable insurance professional in order to make the right choices for your business.
Cyber breaches are too common, and when they occur, they not only threaten your customers' financial well-being; they also threaten the existence of your business if you are not protected by enough insurance. Just one hacker can wreak havoc on thousands of lives by stealing financial and other personal data. If your customers lose money due to a breach at your business, they will expect you to pay. They will also expect you to help them monitor and "fix" their credit if problems arise due to the security breach. The only way to properly protect your business is to invest in cyber insurance.
Share