The number of cyber attacks and data breaches rose by more than 2,000 percent from 2009 to 2011, according to Industrial Control Systems Cyber Emergency Response Team. We hear of high-profile companies being victimized by security data breaches most often, but small, medium and lesser-known companies are not immune to these risks. Additionally, no one industry is safe from a hacker or data breach.
Cyber Liability Insurance Basics
Cyber liability insurance protects businesses that conduct business through the internet from various types of security data breaches or denial of service attacks. These breaches are a result of hackers having access to customer, business or personal data, such as Social Security numbers or credit card information.
Computer malware, viruses, leaking of business trade secrets, intellectual property leaks, and server and network breaches are all examples of how data breaches may occur.
Web-hosting service companies, data storage companies and companies that provide software as a service have a heightened risk of a cyber attack. Banks, insurers and brokerage firms are also at increased risk, according to NBC News.
Cyber Liability Coverage
Cyber liability insurance offers protection for data restoration expenses, lawsuit damages, lawsuit defense fees and expenses, breach notice costs and breach extortion costs. In addition, most cyber liability policies cover loss of digital assets, system damage and business interruption expense.
Cyber Liability Importance
Many business do not have the financial resources to handle the backlash and consequences that a cyber attack brings. Aside from a cyber liability attack possibly costing thousands of dollars in lawsuit defense, it can cost a business in terms of a damaged reputation, dropped customers and lost revenue.
Even with cyber liability insurance, businesses need to take preventative measures to thwart against cyber attacks and data breaches. These include using firewalls, anti-virus and anti-malware software, strong password policies, encryption software, internal controls, internal and external audits and employee training.
Any company participating in e-commerce needs to protect its assets with cyber liability insurance.
Call the insurance experts at Dave Terpening Insurance Agency for the cyber coverage you need in today’s digital world.