With the increasing effect technology has on the way we navigate the world today; we need to protect ourselves more than ever. If you are a business owner, indeed, you have decided to go digital to some degree.
While data breaches have been the hot topic of discussion for years now, that is not the only kind of liability you and your business are susceptible to in this digital world. There is, however, a solution. Cyber Liability insurance covers an array of potential problem areas for business owners.
Another kind of insurance similar to Cyber Liability is Data Breach Insurance. Depending on many factors related to the kind of business you have, the size, operations, and other factors, one or the other may be a better fit for you and your business. Cyber Liability Insurance generally offers a broader scope of protection and preparedness for things such as cyber-attacks.
In the following paragraphs, we look into some of the most common liabilities business owners encounter in the digital world of business ownership and provide the solution, so you know how to protect yourself against cyber liability.
So, what exactly is Cyber Liability?
Cyber Liability Insurance covers things like financial loss due to tech-related risks. For example, cyber-attacks, privacy investigations, and lawsuits are generally covered under this type of insurance. While it is more commonly recommended for larger businesses, small business owners are susceptible to many of the same technological risks. Anything from a data breach to hacking can be included in the number of risks you assume in your everyday business operations.
To protect against these risks, which are innate to the technologically advanced world we live in today, business owners find themselves adding Cyber Liability Insurance to their coverage.
What does it cover?
- Legal – Coverage can include legal services to ensure that you are meeting state and federal regulations.
- Notification – Expenses related to a notification to consumers about their personal information potentially being compromised after a breach or attack are usually covered under these policies.
- Extortion – Any extortion paid to recover files that have been locked during a ransomware attack can be covered with Cyber Liability Insurance.
- Lawsuits – Coverage can include assistance with lawsuits from customer and employee privacy and security lawsuit expenses.
- Regulatory – State and federal agency regulatory fines can be covered as well.
What is not usually covered?
Cyber Liability Insurance only covers claims related to digital liability, not claims related to general liability, property, employment practices, and professional practices. This is because these claims encompass coverage related to other kinds of risks a business owner will likely encounter in the daily operations of their business. Multiple types of business coverage will protect all areas of your business.
At Connie Phillips Insurance, we represent our clients, NOT insurance carriers. We need to do what is best for you in everything that we do. We care about your business as much as you do, and we know that you must stay protected and keep your business thriving. We work directly with business owners like you to find the most appropriate coverage for your unique needs. Whether you have a small business or are running a more extensive operation, at Connie Phillips Insurance, we will evaluate your needs and find the best solutions to protect you and your business from Cyber Liability.