It’s no secret that data breaches are becoming increasingly more common as our society becomes more reliant on technology. With each hack we hear about on the news, more businesses are looking into cyber liability insurance. And while this coverage cannot prevent a breach, it can help a business prepare for and handle a breach that may occur.
Any business—from small, family-owned shops to large corporations—can be hacked, so long as it uses computers. Many business owners think that cyber-criminals prefer targeting large companies because they have more resources; but this action involves much more planning to get through firewalls and other security features. While small businesses don’t have as much data or money as large companies, they are often easier to hack due to less security. In fact, about 70 percent of all cyber-attacks are directed at small businesses.
Fortunately, cyber liability insurance can significantly cut down the cost of a data breach, which may include the following:
- In many states, businesses are required to notify the parties who may have been affected by the breach.
- After notification, it’s customary (and sometimes mandatory) to provide the compromised individuals with a year of credit monitoring services.
- A breach occurred because security had at least one weak point, and you’ll likely want to take steps to prevent the same thing from happening again by hiring IT professionals to tighten up your business’ digital security.
- If customers decide to file a lawsuit against your business, there will be legal expenses involved.
Are you ready to protect your business from the prevalent risk of cybercrime? Your independent insurance agent can help you get set up with the right cyber liability insurance policy.