Cyber Liability Coverage and Why Your Business Needs It
You are one of 3.74 billion Internet users worldwide and whether you know it or not, you leave a trail of data from every nook and cranny you visit on the internet. This data can be compromised in minutes if it falls into the wrong hands or if equipment breaks down. Most cybersecurity experts agree that it is not a matter of if your information will be breached, but rather when. Any kind of breach is bad news for an individual but for businesses, it can be devastating. What can you do, as a business owner to mitigate the risks related to a data breach and reduce the significant cost that can result from them?
Cyber Liability Benefits
Cyber Liability has been around for 10 years, but the recent rise in data breaches is increasing its popularity. After the Equifax breach, in which hackers compromised a website application in order to gain access to private consumer information, the market is expected to grow. Breaches are expensive. According to the National Cyber Security Alliance, one in five small businesses falls victim to cybercrime each year and of those businesses, 60 percent will fold within six months of an attack. You need to protect your business.
This coverage is often added as an additional coverage or endorsement on a commercial policy. It will assist in covering legal fees and expenses and typically helps with repairing damaged computers and recovering compromised data. Cyber liability also benefits the business’ customers. Many times it will assist with notifying customers about a breach and aids with restoring personal identities of affected customers which can be a very expensive process.
Lenz Balder Can Help
As the expense of dealing with a breach gets higher along with the cost of dealing with the ramifications of it, cyber liability coverage becomes a must. It is important to keep in mind that the coverage and coverage limits will vary from carrier to carrier. Contact us to find an insurance plan and protection designed around your cyber insurance needs.