Most data security experts agree that regardless of the size of a business, some sort of data compromise is inevitable. In fact, many businesses have already experienced compromised data without realizing it. This reality makes cyber insurance a necessity.
Who Needs Cyber Liability Coverage?
• Does your business process any type of customer payments?
• Does your business collect customer information such as Social Security or driver’s license numbers?
• Does your business have a website open to the public?
If any of the answers to the above questions are yes, your business needs cyber insurance.
What Does Cyber Cover?
Cyber policies tend to be comprehensive. In addition to coverage for notifying customers of a data breach and legal fees, coverage usually extends to the improper release of physical files. Retrieval of lost data and repairs to damaged equipment are also covered. Many policies provide coverage for loss of business because of a breach.
What Happens Without Cyber Coverage?
The short answer is that your business is still responsibility for all the expenses related to the data breach. These expenses can be quite large and potentially devasting to a business.
Review your current policies and make sure you have appropriate and adequate cyber insurance. Any questions about coverages or potential gaps in coverage should be addressed with an insurance professional.