Most businesses handle some degree of sensitive customer information and a data breach could be catastrophic. Cyber Liability Insurance is essential to protect against the expenses of a data breach. It may protect business assets by paying for legal defense, court related costs, judgements and settlements and the associated costs involving crisis management such as credit monitoring and public relations services.
Small businesses are frequently targeted because they rarely have the resources such as a robust IT department to prepare and defend against cyber attacks. It is important to note that General Liability policies often exclude cyber liability and related costs. Any company that handles sensitive customer information must be aware of their vulnerabilities. If yours is a company that processes payments with credits cards, has access to customer bank account numbers, social security numbers, or any medical data, you may be particularly at risk.
Help Where You Need It
The appropriate data breach insurance depends on your industry and the kind of work you do. The Dowd Agencies will prepare you with coverage that is tailored to your specific needs. One type of Cyber Liability Insurance focuses on first-party responses. This covers legal and related services to identify an actual breach and costs associated with regulatory compliance in the event of a breach. This insurance also addresses the response to immediate customer needs such as credit monitoring and educating your customers about the breach. Crisis management and public relations expenses are typically included as are expenses for business interruption and costs for additional labor associated with a claim.
Another type of Cyber Liability Insurance regards third-party defense and liability. This may cover settlements or judgements that your company is responsible for as a result of a data breach. This may produce liability coverage for electronic media, which could include copyright infringement, network security, and privacy liability issues.