Most businesses and companies rely on data keeping and records. Payment of goods and services is mostly done electronically. There is so much information that can be stolen and compromised, which is why businesses must work hard to keep the data safe. Unfortunately, cybercrimes is a growing problem. Therefore, when data is breached a business can have some major fines and legal fees. For this reason every business, especially small businesses, should have cyber liability insurance. InsureWise would like to break down what cyber liability insurance is and how it can help protect you and your business.
What is Cyber Liability Insurance
A business is often entrusted with sensitive information such as social security numbers, credit card or bank information, addresses and other personal information. If your customers or employee’s personal information has been stolen due to a data breach, cyber liability insurance will help cover your financial losses. Many businesses fail to get cyber liability insurance because they assume their general liability insurance already has them covered. However, general liability doesn’t cover cyber related claims. General liability insurance covers bodily injury and property damages. Cyber or data breaches is not included in a general liability coverage policy. It is important for businesses that have data on both employees and customers have cyber liability insurance.
What Does a Cyber Liability Insurance Policy Cover
When you get cyber liability insurance, you will get help if you experience financial loss due to a data breach. However, not only will legal fees and other expenses be covered due to a cybercrime, but also much more. Cyber liability aids businesses in many other ways. For starters, your cyber liability insurance will notify customers about the data breach. They can also help restore personal identities to those who were affected. The cyber liability insurance can also help in recovering compromised data and repair the damages to your computer system. Most states will require a company to notify customers if the data that was breached involved personal identifiable information. That process alone can be very expensive. By having a cyber liability coverage they can also help monitor credit information to ensure their customers that everything possible is being done to help protect them. This gesture alone show that a company cares about the data breach and how it affects their customers. Cyber liability insurance goes a long way in aiding your company.
Types of Cyber Liability Insurance; First & Third Party
There are two types of cyber liability insurance coverage. One is a “First-Party Coverage” which is focused on helping recover the expenses when a system or network has had a data breach or stolen data. The other type of coverage is a “Third-Party Coverage” which provides extra protection to the company of a client or customer that decides to sue your company. A failure to prevent a data breach is an unfortunate lawsuit that many companies face. To help protect your assets in the event of a lawsuit, you will want a third-party and or first-party coverage.
Cyber Liability Insurance Policies & More in Las Vegas, Henderson, Reno, North Las Vegas, Summerlin, Paradise, Spring Valley, Sunrise Manor, Enterprise, Sparks, Carson City & State of Nevada
If your business is not protected against a potential cybercrime or lawsuit and you need cyber liability insurance, contact InsureWise today or click here to submit this quick and easy quote form.