Business is evolving rapidly, changing from a world of brick-and-mortar
locations to a world that’s constantly interconnected through the
Internet. As our economy becomes more and more based in the world of cyberspace,
more and more businesses are rapidly expanding digital footprint. However,
the more business you do, the more prone you are to being targeted by
hackers. Data breaches are unfortunately all too common these days, and
they only seem to be getting bigger.
Business have a duty and a requirement to protect the sensitive and personally-identifiable
information that their users input, such as names, addresses, and credit
card payment information. If this information is stolen, the business
could be held liable for the loss and any damages that occur as a result.
Fortunately, the insurance industry has adapted and today business owners
can purchase cyber liability insurance to protect themselves.
What is Cyber Liability Insurance?
To put it simply, cyber liability insurance is protection for the event
you are hacked and sensitive information is stolen. A good cyber liability
policy will pay for everything from business interruptions, the cost of
notifying customers of the breach, and the cost of damages you may be
responsible for. Some even cover the costs of a public relations firm
to help repair the damage done to your reputation. The nice thing is this
type of insurance is still fairly new, and many companies are still open
to negotiation in terms of what’s needed, what’s covered,
as well as premium costs and deductibles.
Do I Need Cyber Liability Insurance?
When you consider how many millions of dollars of liability you could incur
as a result of even a small breach, this sort of coverage is almost a
no brainer. If you do business online, you should carry cyber liability
insurance. Even if you have just a single customer, losing their information
to a hacker could be devastating when you consider the costs it could
bring about. Business interruption alone can cause most small businesses
to fail, let alone the tremendous expenses associated with repairing the damage.
Furthermore, it’s important to remember that your general policy
won’t cover you in the event you incur losses because of online
business dealings. General insurance is designed for things like break-ins
and natural disasters, most don’t include things that happen because
of the Internet.
If you need help choosing the right cyber liability policy for your needs,
contact an Atlanta insurance administrator from Insurance Specialists, Inc. today! Dial 888.451.0883 to speak to
one of our representatives.