If your business operates on the internet and collects and stores personal information for your clients and it's a potential target for a data breach, cyber liability insurance may be something to consider. There are many risks with small business, but if you are entrusted with personal, health, or financial information, you need to protect the company and yourself in the event of an attack on your servers.
Cyber Liability Coverage
If you are not sure that you need cyber liability insurance, you might want to talk with your insurance agent about the coverage you have and if it will protect you if client information ends up in the wrong hands. Often the information breach results from a malicious virus or an attack on your servers, but it can happen as a result of a stolen laptop or computer that belongs to the business.
Most cyber liability insurance policies cover you after the breach and can help pay for notifying the clients affected, paying for credit monitoring for those clients, and if you need it, a public relations firm to help protect your business's reputation after word gets out about the breach.
Data being seized and held for ransom is becoming more common these days, and hackers are always finding new ways to get into servers and computer systems. Many cyber liability insurance policies will pay the ransom to get the data back for your business but check with your insurance agent. Some of these policies require the company to pay the ransom, then reimburse the business after the fact.
For small businesses without a lot of capital, this can be difficult. Still, getting the money to the company can take too long to meet the hackers' demands, so it is currently the most effective method of covering these costs.
The cyber liability insurance offered by most providers has coverage for your business if a client files a lawsuit against you because of the data breach. There may be limits to how much they will cover, and you may be able to add additional coverage in any area of the policy, but that will result in a higher premium.
The cost of cyber liability insurance is often tied directly to the number of clients you have and the amount of data you are storing. Each insurance company will have different coverages and different rates, so it is a good idea to call a few places to get quotes and choose the right insurance you need.
For additional information on cyber liability insurance, contact a local insurance provider.