Cyber Liability Insurance: What is it?

Running a business is inherently risky for people being injured while at the office to property damage, but one of the risks that is often overlooked is technology. Cyber attacks are becoming more frequent and while many assume that only large companies are targeted for data breaches and hacks, that is simply not true. Any company that stores sensitive customer or company data such as intellectual property, trade secrets, credit cards, social security numbers, and bank account information is at a higher risk of being attacked. 

While using data encryption tools and other software solutions is one defense mechanism against cyber threat actors, it only takes one hacker to be able to infiltrate your network. Consequently, cyber liability insurance provides a safeguard by offering financial protection and other benefits to business owners in the event that you suffer a cyberattack. In short, cyber liability insurance helps cover the following:

  • Regulatory fines from local and federal authorities
  • Legal services
  • Lost income from an outage
  • Lawsuits from customers or employees related to privacy and data breaches
  • The expense associated with notifying customers about a data breach or hack
  • Assistance in paying for identity protection monitoring for impacted customers or employees

The cost of cyber liability insurance varies greatly depending on the number of customers that you are storing sensitive data on, the type of information being stored, total revenue for the business, and any previously filed claims.

When it comes to finding a commercial insurance policy for your business gives the team at Options Insurance Agency in Hershey, PA a call. Our talented team of insurance professionals will work tirelessly to customize a policy that meets all the needs of your business.