Cyber liability insurance protects your business from hackers and criminals that could steal company or consumer information. In the event of a breach, this type of policy would cover the costs associated with safeguarding your data and protecting your customers.
A cyber liability policy is designed to protect your company from the most common expenses related to a data breach. Some of the costs it can help offset are-
Notifying potential customers of a data breach.
Expenses related to protecting your network.
Defense costs related to potential lawsuits.
Damage control and public relations needs.
Many small business owners assume that they are not at risk of a data breach, but they are, in fact, a heavy target by cyber hackers. The risk of data breaches in the small business environment is quite real, and you may wish to obtain both third-party and first party coverage to protect you from the costs associated with the data breach.
When you have third-party coverage, you’ll be protected in the event that a lawsuit is filed against you by a partner or a customer resulting from a data breach where you were negligent. First party coverage, however, provides you with assistance in the form of financial compensation to help you address urgent business and customer needs, like the challenges associated with your IT network going down.
The overall cost of cyber liability insurance can vary greatly depending on a few factors.
The main contributing factor to the cost of cyber liability insurance is the overall level of risk. There are actually several different policy types that can be applied to protect your digital assets - contact a Links Insurance professional for additional details.