Cyber Liability Insurance Fundamentals: Things To Know
In a time when so much of commerce has moved online, and so many businesses are storing information digitally, hackers and data poachers have never been more rampant. Most businesses employ a cyber-security team or service to help protect that data, but that doesn't guarantee that your company and customer data will actually be secure. Vulnerabilities can be exploited, resulting in data breaches that can be costly. That's why you need cyber liability insurance for your business. Here's a look at a few of the things that your cyber liability coverage will help you to pay for, should the need arise.
Breach Disclosure Coverage
There are laws that define the notification requirements for businesses that have experienced a breach. As soon as you determine that your company's servers were breached, and what information was accessed, it's your company's legal responsibility to notify any potentially affected consumers.
That disclosure process can prove to be costly, especially when you factor in the expenses associated with establishing call centers, sending out printed notifications, and paying for credit monitoring or other necessary services for those who are affected. Cyber liability coverage will help your company to pay these costs.
Electronic Media Violation Coverage
With the increased popularity of online resources for information, it's all too easy to run afoul of copyright and other intellectual property laws. You may also experience problems with defamation, slander, or similar violations. These problems can lead to costly legal claims, all of which your company's liability coverage may deny to pay for. You might find that you need additional protection for things like this, which is where cyber liability insurance comes in.
Cyber liability coverage will provide you with the protection that you need in the event that your company faces a claim like this. Unfortunately, all it takes is an employee using an image from the internet that wasn't actually labeled for fair use.
Brand Reputation Reconstruction Coverage
If your company experiences a data breach or other digital threat of any kind, you'll find that the repercussions can be devastating for your company's reputation. In response to an issue like this, you'll have to retain the services of attorneys, brand marketing specialists, catastrophe response professionals, and more. These services can be costly for your business.
For those companies that have cyber liability coverage, you won't have to worry about those costs. Your cyber liability coverage will help you to pay the expenses associated with these services.
These are some of the things that every business owner needs to understand about cyber liability insurance. Talk with an insurance agent such as Fullsteam Insurance for more information.