Did you know that the average cost of the largest single cyber attack incident for a business located in the United States is $200,000?
Some studies have found that cyber attacks are the largest risks that European and North American companies face.
No matter what industry your company services or how large your organization is, your company has a cyber risk. That's why it's important for you to learn about cyber liability insurance and how it can protect your company.
Keep reading to learn more!
What Is Cyber Liability Insurance?
Cyber liability insurance will protect your company's liability for any data breaches. The type of breeches your company can cover can involve the leaking of customer information that is sensitive, such as health records, credit card numbers, Social Security numbers, driver's license numbers, and bank account numbers.
Cyber liability insurance is different than general liability insurance. This is because general liability insurance only covers property damage or injuries that have resulted from your company's operations, product, and services.
What Does It Cover?
Cyber liability insurance will cover legal expenses and fees. Also, this type of insurance will help your company with:
- Repairing any damaged computer systems
- Notifying your customers about the data breach
- Attempting to recover any compromised data
- Restoring the identities of any customers that have been affected
When your company begins to hold any personal data from your customers (or even your employees), your company may be legally obligated to follow data breach Laws that are state-specific. By using cyber liability insurance, you can help cover all of the costs that ensure your company complies with state laws, federal laws, and even international laws.
Why Your Company Should Consider Buying Cyber Liability Insurance
Keeping your customers safe isn't the only reason why you should consider buying cyber liability insurance. Your company will also benefit from the stipend of insurance if your cybersecurity ends up failing.
No matter how strong your network security is, there's still a chance that your security could be penetrated. If your security does end up failing, cyber liability insurance will act as a backstop to keep your company safe.
In addition, depending on the state you live in, it may be necessary for your business to purchase this type of insurance to comply with regulations. Some industries, such as finances and health care Industries, have to have this type of to keep up with current regulations.
Understanding the Importance of Cyber Liability Insurance
Whether your business is sending, receiving, or storing electronic data, cyber liability insurance will protect your company in the instance of a data breach.
Even records such as sales projections, phone numbers, tax records, and other types of information necessary for your business to run should be protected with cyber liability insurance.
Are you not sure what type of coverage your company needs? We're here to help you! Click here to learn more.