How this coverage protects you
Target. Wendy’s. Even the IRS. Large or small, businesses that take customer data, such as credit/debit cards or bank account numbers, are all subject to hackers and data breaches. Cyber Liability insurance protects your business against the expenses that can arise from a data breach, which can be very costly.
Cyber Liability Insurance
- Your CFO leaves his laptop in a cab, possibly exposing data like customer records, mailing list and protected PII (personally identifiable information) on the hard drive open to criminals. Property coverage can handle the physical claim, but who would you call to mitigate the more arduous task of your data loss?
- Your POS system has been attacked by malware. You have a partnership with a major payment service provider and turn to them in hopes that they will be the responsible party. You find out your Terms with the provider are limited to the value of three months of your fee cost towards their liability. You learn too late that you, as the entity accepting the payments, are the one responsible for the loss.
Experts often say, “It’s not if your company will suffer a cyber attack, it’s when.” While best practices and diligent efforts can diminish much of your risk, cyber criminals advance to stay ahead of your efforts. Cyber Liability and Data Breach policies can defend you against liability claims of your negligence protecting personal identifiable information, notification cost, forensic and crisis management costs and even Media Liability such as trademark infringement. A good policy is a powerful gap-filling solution to the risk every business owner faces in the digital age.
Notification efforts, coupled with hiring a forensic team and law firm, loss of customer goodwill and increased churn, a data breach incident can quickly become quite costly. The Ponemon Institute’s 2016 study reported a total average cost of $221 per record in America.
Not all Cyber Liability policies are created equal. It’s vital to evaluate all aspects of your policy with up-to-date knowledge of the evolving risk.