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Almost every business uses a computer network. Even if you simply use it for taking notes in your workshop, it’s going to contain important information. Indeed, most commercial computer networks contain more than company information. They also contain data, often personal, that pertains to your clients. Cyber liability insurance might help mitigate problems from data losses affecting others. Who need this protection and when do you need it?

As a simple answer, all businesses need this coverage. Let’s rephrase that. All businesses that use computer networks can often benefit from it. Let’s think a little more about why.

The Importance of Cyber Liability Coverage

If you use a data network in your business, chances are, it will contain data about third parties. This might include customer addresses, phone numbers or social security information. It might also include bank account or credit card information. If this information becomes lost or publicly-exposed, it might harm the customer. They might face identity theft or financial losses because you did not manage their personal information.

What if a data loss causes you to double-charge a customer for a service you provide? Or, what if a hacker steals someone’s credit card information and drains their bank account? The client might hold your business responsible for their losses. They might sue for repayment or extra compensation.

Cyber liability insurance, in this case, might help you settle with the affected party. The policy’s funds can go towards the client’s recovery. Coverage might also settle costs levied by state regulators, crisis managers and courts. In some cases, it might even help you pay for recovery and new security of the lost data. In other words, this policy can pay to help you do damage control.

When to Ask for Cyber Liability Coverage

Many business owners start their insurance portfolio with a business owners policy, or BOP. This policy generally contains liability, property and business interruption coverage. Yet, the included liability coverage often does not include cyber liability insurance. Often, you must ask your agent to add this coverage as an endorsement on your coverage. In other situations, you might have to get a separate policy altogether.

Ask your agent if your BOP automatically comes with cyber liability insurance. If it does not, consider adding the coverage. Your agent can help you determine the policy limits that best suit your needs, call us today at 708.423.2350. With cyber liability protection, you’ll often have added security for data losses that affect customers.

Also Read: How to Review Your Business Insurance for Asset Protection

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