4 Reasons Cyber Liability Insurance Is Necessary

Anthem, Ashley Madison and the United States Government are all recent entities that recently experienced a digital security breach. However, it’s a mistake to assume that hackers are only after large entities; in reality, they are after information. Since you house and process information at your place of business, it is possible that you can become a target as well.

The information that you process and store about your customers is proprietary. Sensitive information, such as social security numbers and credit card information, can easily be stolen, even if you have the latest security software. With the potential for a data breach increasing every day, cyber liability insurance offers your business financial protection when you need it most.

Cyber Liability Insurance Expedites the Recovery Process

If you have never experienced a data breach, then consider yourself lucky. The recovery process is quite extensive, and it could lead to a business shutdown in extreme situations. Fortunately, when you have cyber liability insurance, recovering is made simpler with the financial means to clean up the mess and get your business back on its feet.

Cyber Liability Helps Reduce the Cost of Recovery

Recovering from a data breach can be costly. In fact, the Ponemon Institute estimates the money spent recovering from a data breach is about $3.8 million dollars. Can your business afford to spend millions recovering from a data breach? A lot of businesses can’t, which makes it critical for business owners to purchase cyber liability insurance.

Protection for Data Breaches

Without experiencing a data breach, it’s hard to anticipate what your needs will be during the recovery process. When should you inform your customers? What are your legal responsibilities? Cyber liability insurance offers your business more than financial assistance. You also get additional coverage options that can help you restore your business to the state it was in prior to the breach.

General Liability May Not Cover Data Breaches

Most businesses have general liability insurance. As a result, business owners may think that they are protected from data breaches; however, this coverage may not protect you. Some general liabilities specifically exclude liabilities associated with online transactions. If you rely on your general liability insurance, it’s important that you examine your policy to ensure you have complete protection. If you don’t, consider purchasing a cyber liability policy, providing business insurance that protects against cyber-attacks.