In this technically advanced world, there are many things that are a fact of life that simply didn’t exist 15 to 20 years ago. For businesses, data breaches are one of those things. Much like the inevitability of death and paying taxes, for businesses, data breaches have become an inevitability of doing business. It’s not necessarily a matter of if the businesses data will be breached, but when this event will occur. For that reason, the insurance industry has stepped up to the plate with insurance coverage to handle these particular incidents. This type of insurance is known as Cyber Liability, and it’s becoming a very popular type of insurance coverage for businesses to have.
The interesting thing is that Cyber Liability has been around for at least 10 years. Unfortunately, with the elevated rate at which businesses are experiencing data breaches, more and more business owners are beginning to take note of this type of insurance and asking questions whether this type of coverage is right for them.
The fact is that if a business has important data relating to the business, or to their existing clients, this type of liability insurance is essential. It’s essential because these sorts of data breaches seldom go unnoticed these days. In the United States, 46 of the 50 states have laws requiring businesses to inform clients of data breaches that could endanger an individual’s personal information. This can lead to lawsuits and other types of litigation brought against companies by those affected by the data breach. This is what makes this type of insurance invaluable.
This insurance can cover things such as the financial loss as well as the expenses associated with fixing and investigating data breaches. This type of insurance also helps compensate people who been affected by the data breach, such as the business and any customers whose information has been compromised because of a breach.
There are many other issues to this insurance that are far too numerous to mention in this article. That’s why, if your business collects or holds data, especially important personal information about customers or employees, cyber liability insurance needs to be considered. If you want to know more about this policy, what sorts of coverage it provides and how much it costs, a resource like website can be very helpful for your business when you want to protect its cyber liabilities.
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