Cyber Liability Insurance, How to Protect Your Business in
"The times they are a-changin" as Bob Dylan sang, and they certainly are. We’ve all seen the incidents of data security breaches continue to increase at an alarming rate. It’s crucial to stay aware of the latest cyber security threats, and act proactively to protect your business. However, in addition to taking the standard precautionary measures to ensure that your data is secure, such as creating a Written Information Security Program or WISP, it’s also important to be aware of the benefits of cyber liability insurance. In the event of a breach, your business won’t suffer extreme financial hardship and can recover more quickly.
Businesses of all sizes are targets for security breaches. Although you may not have a lot of client data, don’t forget about all of your employment records. If a breach occurs, under Massachusetts state law you are required to take a variety of steps, including notifying all contacts in your data base, and alerting the attorney general.
There are different levels of cyber liability insurance, and your insurance broker can work with you to determine the amount of coverage that best suits your needs. It’s also important to note that although the coverage is called cyber liability, the coverage will extend to any paper records you have.
If your business is the target of a breach, cyber liability insurance can help cover the following:
- Notification costs to those whose data was compromised i.e. all your clients and/or employees
- Fines levied against your company for lack of security and controls
- Your loss of income, i.e. if clients lose confidence and no longer work with you because they’re concerned their data isn’t adequately protected
- Your legal fees in the event of a law suit
Just as you insure your computers, it’s important to insure the information that’s stored on them. The financial ramification of having your information stolen is greater than the cost to replace the computers which house the data! Cyber liability insurance is an often overlooked type of insurance that you should get more familiar with.
To learn more about cyber liability insurance and the types of coverage available, contact Patrick Darcey at Provider Group. Patrick can be reached at 401-671-6355 or firstname.lastname@example.org
Patrick Darcey is a Risk Management Specialist at Provider Group. He works with clients to lower their total cost of risk by employing strategies such as loss control and risk management, including safety training, claims management and alternative risk financing methods.