The way we do business is changing, and insurance options must change right along with it. Failure to do so could leave your business open to lawsuits or financial loss. If you own a business that utilizes any form of technology, then you may be interested in learning more about Cyber Liability Insurance. This type of insurance is more important than ever because so many businesses use technology to store and exchange sensitive information.
Cyber attacks and data breaches threaten the security of your business, and insurance may be the only way to pay for damages created by either of these instances. At Southern States Insurance, we want our clients to understand that Cyber Liability Insurance can protect your business in significant ways.
Cyber Liability Insurance Coverage
Essentially, Cyber Liability Insurance covers the internal and external financial costs associated with data breaches. Because so many businesses experience data breaches at some point in their existence, they are also opening themselves to lawsuits or other financial loss.
First Party Coverages
First-party coverage covers the financial loss and expenses associated directly with a data breach. Examples of such coverage include:
- Extortion costs
- Reputation restoration costs
- Replacing electronic data
- Expenses related to notifying impacted parties
These types of expenses are focused on anything the business itself lost during the breach or cyber attack.
Third-party coverages deal with the financial loss that may arise when claims or lawsuits are brought against the company once impact parties are made aware of the breach. Example of such coverage includes:
- Media liabilities
- Network liabilities
- Regulatory agency proceedings
These expenses are focused on more external costs that help remedy the loss that individuals may have experienced due to the data breach or cyber attack.
Who Should Acquire Cyber Liability Insurance?
If your business handles any type of data, then you may benefit from Cyber Liability Insurance. Cyber attacks often happen and usually in small or medium-sized enterprises. The most commonly impacted businesses are restaurants, hotels, law firms, and other businesses that obtain large amounts of information from people.
An experienced Business Insurance broker can provide more insight into whether or not this type of insurance is appropriate for you and your business.
Speak To The Experienced Business Insurance Brokers
Cyber Liability Insurance is a fairly modern type of insurance that some people simply don’t know much about. At Southern States Insurance, we are committed to keeping our clients abreast of the latest changes in insurance and providing the information you need to make the most informed decision regarding your business.