Data breach insurance and cyber liability insurance helps cover the costs of a data security breach for things like identity protection solutions, public relations, legal fees, liability and more depending on the coverage you choose. You want data breach coverage in place because quick action is critical to help restore the public’s confidence, if your business is victimized by a cyber-attack.
To mitigate the risk of civil litigation and other penalties when a data loss or theft occurs, a cyber liability or data breach insurance policy can provide access to professional assistance to help businesses comply with applicable laws and regulations.
Businesses must respond swiftly to minimize the impact of a data security incident on their customers, employees and their business. Their reputation is at risk, and there are laws and regulatory requirements that must be addressed immediately or companies that experience a breach could face steep penalties and even lawsuits.
Our Data Breach and Cyber Liability coverages include access to services that assist businesses in
preparing for a breach by helping ensure that proper security measures are in place before there is
an incident. For example, these services can help businesses with network security, employee
training, developing appropriate privacy and network policies and procedures, identifying and
managing company assets, and incident response planning. Data security is challenging and requires a
holistic, multi-faceted approach.
Most business owners understand that the personally identifiable customer information they have on their computers is a target for hackers and that their online presence leaves them open to liability claims. However, far fewer take adequate measures to protect their business. Here are some example scenarios where a businesses could benefit from cyber liability or data breach insurance:
- The business has a network that their employees all save data on, which is helpful but also puts the entire operation at risk should a computer virus work its way in.
- The business keeps customer/patient records such as medical histories, credit card, bank account
and social security numbers in its database – which is a target for hackers.
Back up your data regularly and store it securely. If your business is the target of a data thief,
you want a recent backup available so you can restore your valuable data.
In the event of a data breach, a business must respond quickly to help protect impacted individuals
and the business’s reputation. Our coverage can help with response related expenses including, costs
to notify impacted individuals and good faith advertising. And in most states, cyber security
coverage is available to help cover legal defense and liability expenses if your business is sued
because of a breach.