Today, nearly all businesses use computer networks in some way, shape or form. And with remote work becoming more prevalent, the worldwide network is only expected to grow. These connections are great for the smooth functioning of business and the economy, but they also pose risks to users. There’s always a chance that networks could crash, data could disappear, errors could occur or cyber thieves strike. Should your business face such a hazard there’s a chance that harm might spread to consumers. In these cases, you need to be able to respond quickly. A benefit called cyber liability insurance can help you do so.
Understanding Cyber Liability Insurance
Consider some of the sensitive information that you might store on computer networks. Data might include:
- HR records and employee information.
- Customer information (names, addresses, birth dates, social security numbers).
- Tax information.
- Credit card or bank information of clients and the business.
Specialty businesses might store specialty data, as well. For example, a medical care provider might have on file client medical records. Delivery companies might collect driver’s license and registration information. All such information is sensitive if it falls into the wrong hands.
While you might think you have high security on your network, predators come up with new ways to hack these systems every day. They might steal information, use it against your business or use it to steal someone’s identity. One hack might lead to incalculable information lost, financial losses and harm to others. As a result, the business has to respond.
When Can Your Policy Help You
Cyber liability helps the business take responsibility for losses caused by data breaches or data losses on their networks. The coverage might help following:
- Virus & malware invasions
- Ransomware invasions
- Online extortion scams
All policies vary, and they will exclude certain losses, too. Hazards that often don’t have coverage are intentional actions by the company. To get more coverage, you might need a special policy endorsement, or a different policy altogether. Physical theft of a computer system might need coverage under property insurance, for example.
Once your agent verifies that the loss has coverage, then your policy might pay for a variety of the costs. These might include:
- Costs of notifying those affected by the breach
- Identity recovery and monitoring
- Regulatory fees
- Data restoration or recreation
- Credit monitoring
- System repairs and upgrades
- Public relations services
- Business interruption costs
At the end of the day, the cyber theft was likely beyond your control. Your cyber liability policy can help you restore the business to full capacity with as little threat to your bottom line as possible.
Securing Your Data
Consider cyber liability insurance to be a great asset in case you ever need it. However, don’t make it your only line of defense against cyber threats. It’s usually easier to have strong data security than to deal with the process of making a claim.
- Train all employees in data security literacy. They should know never to leave networks unlocked or share passwords. Teach them what to look for in cases of spam, phishing or cyber hacks.
- Require employees to routinely change their own passwords.
- Back up all data regularly and encrypt your data. Keep your encryption services up to date.
- Use a multi-step authentication process to add layers of security for those trying to access the network.
- When installing anti-virus or malware protection, use a system that is compatible with your computer network.
- Hire a reputable IT service that can keep a close eye on data system performance. They can notify you quickly if data problems develop.
In the event of data theft or cyber hacks, immediately call your cyber liability insurance provider. They can help you determine the best way to proceed with the claim. A quick response on your part can help you minimize the damage.
Also Read: Why Won’t General Liability Insurance Cover Cyber Breaches?