Tragically, data breaches and other cyber crimes are becoming way too common. For a discount retail chain, a well-known health insurer, one of the nation’s largest banks, an entertainment network and the federal government, data breaches have resulted in major fines and legal fees, as well as headaches. However, it is not just large organizations that are susceptible to being hacked or getting a virus. In fact, 53% of small businesses have had multiple breaches, and 55% of small businesses have experienced at least one data breach. A data breach can damage your reputation and put your customers and/or employees at risk along with it damaging more than just your small-business computer system. For any size business, cyber insurance can be a smart precaution for such reasons. With this in mind, we at InsureWise would like to discuss the basics of cyber liability insurance and beneficial it is for your business.
What is Cyber Insurance?
For a data breach involving sensitive customer information, such as credit card numbers, account numbers, Social Security numbers, driver’s license numbers and health records, cyber insurance generally covers your business’ liability.
Does a Commercial General Liability (CGL) Policy Cover Cyber Liability?
Any bodily injuries and property damage resulting from your products, services or operations is covered with general liability insurance. More often than not, cyber liability insurance is excluded from a general liability policy.
What Does Cyber Insurance Cover?
Cyber insurance typically helps with the list below in addition to the legal fees and expenses.
– Personal identities restoration of affected customers
– Damaged computer system repair
– Compromised data recovery
– Data breach notification to customers
A process that can be very expensive is notifying customers of a data breach involving personally identifiable information, which is required by most states. It is a great gesture goes a long way with public relations, even though most states do not require companies to offer free credit monitoring following a breach, it is something that should be considered.
What are the Different Types of Cyber Liability Insurance?
When it comes to comes to cyber liability insurance, InsureWise can help you get the right policy in place that better protects your business. Typically, there are 3 separate policies that surrounds cyber insurance coverages; data compromise protection, identify recovery protection, and cyber protection.
1) Data Compromise Protection. This includes credit monitoring and services provided by a public-relations firm.
2) Identity Recovery Protection. This coverage helps victims of identity fraud restore their credit history.
3) Cyber Protection. In addition to helping with the cost of restoring and recreating data, cyber protection protects your business against damage caused by a virus or computer attack.
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When you experience financial losses that result from data breaches, hacking and other technology related events, you are going to want cyber liability insurance backing you up. It is it is critical to consult with an independent insurance broker like InsureWise to explain these differences and help you find the best coverage for your needs since cyber liability insurance policies vary widely between different insurance carriers. Call InsureWise today to discuss your insurance needs or click here to submit an online quote form for more information.