Recovering from a business data breach can cost your small business not only its reputation, but hundreds of thousands of dollars in fines and recoup expenses. These include business interruptions, security overhauls, concessions to customers, and sometimes bankruptcies and even business closures. Since most general liability policies do not cover the costs of a security breach, small business owners should take action to not only secure their customers’ valuable data, but to protect their own assets should such an event occur.
Like any type of coverage, cyber liability insurance covers policyholders in the event of a specified loss – in this case, a cyber-attack. As business owners work to recover information and resources from a data breach, the insurance covers expenses such as credit monitoring for affected customers, lost revenue, crisis and reputation management, customer notification, and investigation of the attack.
Although most policies provide third-party liability coverage as well as first-party coverage for loss or damage to property, there is a wide variation in other needed coverages. More specifically, small business owners need to know whether coverage is provided, and at what level, for:
- Regulatory actions
- Incident response costs
- Credit and identity monitoring
- Transmission of viruses
- Internet and media liability
- Network security
- Business interruption and extra expenses
- Extortion expenses
- Data loss and restoration
Ultimately, cyber liability coverage comes at a low premium in comparison to the potential repercussions of a data breach. Representing a small percentage of a company’s annual insurance costs, it is well worth the investment. You have worked too hard to lose it all.
Are you covered in the event of a cyberattack? Let us help you find the right cyber liability policy to help protect your business. We are your insurance solutions provider and partner, serving Warwick, Greenwood Lake, Florida, Pine Island, Goshen, Middletown, Chester, Monroe, Newburgh, Orange County, and the Hudson Valley and Tri-State Area. For more information, please contact us at 845-986-1177.
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