24 May The Importance of Cyber Liability Insurance
Out of all of the types of insurance that company’s need, cyber liability insurance is one of the least understood. However, it’s also one of the most important, thanks to the rise in hacking incidents, particularly those that target online businesses that sell goods and services. In case your company’s website is hacked, leaving the personal information of hundreds (if not thousands) of your customers exposed, cyber liability insurance will kick in and help foot the bill for some of the compensation and tools that you’ll need to provide to those clients.
Who Needs Cyber Liability Insurance?
Since hackers often have one goal in mind – to obtain other people’s information that they can then use for nefarious reasons – they commonly go after businesses that handle tasks or sell goods. Examples include online stores that have credit card information, as well as bank account details.
Other companies, like those that do tax returns online, cybersecurity, or similar tasks, usually have personal information, such as social security numbers, addresses, driver’s license numbers, and full names and phone numbers, that hackers want. In addition, clinics and hospitals with large intranets and repositories of medical information also may be targeted by hackers.
What Does Cyber Liability Insurance Cover?
Let’s start by mentioning the damage that usually occurs to your company’s reputation once word spreads that it’s been subjected to hacking. Many people will stop shopping or patronizing your business, believing that their information might be at risk. In order to combat this, you’ll need the help of a good public relations firm to restore your reputation. Thankfully, cyber liability insurance usually covers this.
In addition, it may pay for credit monitoring for the affected parties, often for several years after the incident. The insurance can also pay for whatever it takes for you to alert your customers and clients that there’s been a breach. This could be done through emails, via advertisements, or by phone, but it has to be completed within a short period of time after the hacker event. Otherwise, you could face additional fines and penalties.
Also, and this is the crucial part, your cyber insurance policy may cover the cost of repairs to your site. You’ll need to fix and close the virtual holes that the criminals used to get into the site. The experts who you hire for this may find other security flaws as well, and you’ll have to pay to have them repaired. But the good news is, that in the end, your site will be secure again.
How to Get Cyber Liability Insurance
If you think that you need a policy, are wondering what one would cover, or have any additional questions, give us a call. We’ll do our very best to answer all your questions and set you up with a cyber liability insurance policy that protects your livelihood and that of your customers and clients.