Computers have become a vital tool for many businesses and are used for sending, receiving, and storing electronic data. This opens up a new avenue for risks, as your business works not just with physical assets, but with data that must be protected as well. All businesses should have an effective cybersecurity plan in place.
The computer systems owned by your business may contain important information about your business, such as sales and tax records. Additionally, they could also contain sensitive information belonging to your employees, your customers, or vendors.
If your security is compromised, this data can be costly to replace, and if the data belongs to a third-party, your business could be sued for damages caused by this information being stolen.
For this reason, a cyber liability insurance policy is recommended in order to help protect your business against the costs resulting from a cyber-attack or data breach.
What is Cyber Liability Insurance?
Cyber liability insurance falls into two categories: First-party coverage, and third-party coverage.
First-party coverage protects your business from the costs associated with a data breach. This can include losses due to business downtime and data recovery costs.
Third-party coverage can help with the costs resulting from damages suffered by your customers or partners because of a cyber-attack on your organization, such as legal fees.
Who Needs Cyber Liability Insurance?
Nearly every type of business that uses computers and technology face risks presented by cyber threats, and as technology becomes a more integral part of doing business, the need for protection against data loss and theft will only increase.
Any business that uses computers should consider a cyber liability insurance policy.