As a business owner, you understand that insurance products help address many of the risks inherent in your operations. For example, your employees may experience injuries in the course of doing their work. You purchase a workers’ compensation policy that helps cover expenses and claims related to on-the-job injuries. As with many businesses, you deal with customer data, IT-supported operations, online transactions and other elements that expose you to cyber threats. You have to consider more than just threats from hackers and malware. What if a security breach results in a claim made against your company?
Understanding Cyber Liability Insurance
Liability insurance products usually offer protection if your firm can be held liable for damages against another party. While general liability and professional liability policies offer certain types of protection, they do not cover losses or damages associated with cybersecurity. You need a cyber liability insurance plan that can cover your business against the following:
- Data breaches
- Virus or malware transmissions
- Identity theft
- Online privacy violations
Protecting Your Business
A claim or payout due to uncovered loss can be devastating to your business. You purchase property insurance to cover damages or losses related to the actual building and its contents. Why wouldn’t you do the same for your data and online information also? Look for an insurance provider that can help you manage your cyber threat risk.