Using computers at your business can help to make everything run smoothly and efficiently. However, it can also make you much more vulnerable to a cyber-attack or data breach. A data breach can compromise all of the personal, secure information that you have, which can put not only your business, but also your clients at risk.
While many small business owners think that they are not as vulnerable to a cyber-attack due to having less secure information than large businesses, the opposite is actually true. Since large corporations have a larger budget, they have the ability to pay for better secure measures. As a small business owner, you probably do not have the same amount of money that is needed to pay for these security measures, which can make you much more vulnerable.
Cyber liability insurance will provide coverage for both first party and third party issues. First party coverage will provide protection for:
- Forensic and legal services that are used to determine if a breach occurred, and assist with any necessary regulatory compliance once a breach is verified.
- Notify all affected clients and employees, including the cost to prepare and mail out notification letters.
- Credit monitoring systems that will be provided to all affected clients, including fraud monitoring, public records, and any other information that is needed.
Third party coverage will provide protection for:
- Civil awards, judgments, or settlements that you will be legally obligated to pay after a data breach that occurs at your business.
- Any electronic media liability, including infringement on domain name, copyright, service mark, trade name, or slogan.
- Coverage for any employee privacy liability, as well as any network security following the breach.