Virtually every company that uses technology to conduct business faces the risk of a cyber incursion. As technology advances, becoming more complex and sophisticated, unfortunately, so do the threats and the sophistication of criminal hackers. Smart business owners know it is wise to be prepared and protect against risk by putting cyber liability insurance in place.
Why Your Business Needs Cyber Liability Insurance
The cost of dealing with a data breach is typically enormous. It goes far beyond strengthening security procedures and repairing databases. Current regulations require companies to notify customers when a data breach compromises personal and confidential data. Standard business insurance may not be adequate to protect your company from the costs associated with the damage inflicted after a cybercrime.
Types of Cyber Liability Insurance Coverage
Different types of cyber liability coverage are available to fit your company’s specific needs. A cyber insurance policy may include distinct insuring agreements, business interruption coverage, as well as third-party and first-party coverage.
Distinct Insuring Agreements
This option allows a company to be covered at different levels for different risks. It provides greater protection, as a company can set a higher limit for a particular risk, based upon specific business needs.
Business Interruption Coverage
Cybercrimes may not be included in the business interruption coverage most businesses hold as one aspect of property insurance coverage. If a computer virus or denial-of-service attack impacts your ability to do business, this coverage applies to your expenses and lost revenue.
Third-Party and First-Party Coverage
Companies are obligated to keep their customers’ personally identifiable information (PII) and protected health information (PHI) confidential. If this information is exposed in a data breach, the company may be held liable for damages. This coverage provides protection against liability to others and reimburses the company for expenses incurred as a result of a data breach.
To obtain the right cyber liability coverage for your company, contact Minnesota Employers Insurance Services in Maplewood, Minnesota. Our local agent will work with you to tailor the coverage you need based on the risks your business is facing.