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Cyber Liability Insurance

Cyber Liability Insurance: Insurance for Cyber Threats

Cyber crime is a relatively new threat in the business world. The popularity of the internet has exposed businesses to new threats. These threats are called cyber crimes, and insurers are fighting back by offering cyber liability insurance. This insurance helps business owners recover after falling victim to digital crimes, such as data breaches.

Why a Business Needs Cyber Coverage

Businesses can lose millions of dollars due to damages from cyber crimes. In addition to financial loss, businesses can also have their reputations ruined as a result of loss of customer trust. Even if the business is not at fault, customers will still begin to doubt the safety of doing business with the company in question.

The fallout from such a crime can also have a profound effect on customers. Cyber-criminals can use stolen information to apply for loans, credit cards, and open dozens of fraudulent accounts. A customer could end up with ruined credit and hundreds of dollars worth of expenses.

This is why cyber liability insurance is important, especially for businesses that operate online or collect private customer information. Here are 5 ways in which this coverage benefits business owners and customers.

1. If customers sue the business following a data breach, cyber liability coverage helps pay fees associated with litigation and court costs.
2. If business computers are damaged during a data breach, then the insurance will help repair or replace the equipment.
3. A business can get help with recovering their stolen data.
4. The insurer will assist the business with notifying the public about the data breach.
5. Affected customers can get compensation for costs associated with recovering from identity theft resulting from the data breach.

Cyber Crime Shows No Signs of Slowing

Cyber liability provides a way to protect your business should you experience a data breach. Without coverage, your business could be faced with paying millions of dollars in damages. But with coverage, your business will recover from the financial setback.