Nearly every American business uses technology in some form or other, and your company’s data network might
be your primary s
torage space for countless sensitive items. Today, it’s possible to store anything from company materials to customer data on your servers, but these data networks
have to
function properly in order
to provide optimal results. Unfortunately, they are not invulnerable.
Servers could crash, data could be lost, cyber thieves could strike, and countless other problems could affect your computer network. When these issues arise, they could have far-reaching effects, far beyond the doors of your office. Anyone whose data is stored on your computer networks could be at-risk of challenges, and because the problem happened on your wat ch, you have to be ready to help them.
At this time, a critical form of commercial insurance called cyber liability insurance will be able to help you respond to these challenges. It’s there to specifically address the far-reaching harm that a problem with a single business’s network might have. In the days of broad internet connectivity, where the world is more integrated than ever before, this coverage is critical to ensuring that you will be well taken care of in case of any unforeseen challenges.
Understanding Cyber Liability Insurance
Any business that uses computer technology (in any form) has data that is needs to protect. And, the more business you do, the more data you are likely to accumulate.
Consider just a few of the sensitive pieces of information that your business might store on its data network:
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HR records and employee information.
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Customer information (names, addresses, birth dates, social security numbers).
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Tax information.
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Credit card or bank information of both clients and the business.
Of course, businesses in unique industries will store unique data. Medical facilities will often store client records within their network, while trucking companies might store driver’s license information and shipping invoices on theirs. No one piece of data is any less sensitive than another, differences notwithstanding , and all of it could be vulnerable in the hands of a dishonest actor.
P redators come up with new ways to hack these systems every day. They might steal information, use it against your business or use it to steal someone’s identity. One hack might lead to incalculable amounts of information exposure , financial los s and harm to others. As a result, the business has to be ready to respond to any eventuality, both through a risk management plan and with their cyber liability insurance.
When Can Your Policy Help You ?
Comprehensive cyber liability insurance is designed to help you take control of your data security during challenging situations. All in all, it will help you r business take responsibility for unexpected losses caused by data breaches o r losses on their networks. The coverage might help following:
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Virus & malware invasions
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Hacks
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Ransomware invasions
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Online extortion scams
Physical theft or damage to a piece of hardware will receive coverage under standard property insurance, as opposed to cyber liability coverage, in most cases.
Still, all policies will vary, and it’s important that you work with your commercial insurance agent to optimize your coverage to your advantage. The better your coverage applies to you, the more the financial benefit you will receive from your coverage.
How Claims Work
Once your agent verifies that a data loss has coverage, then your policy might pay for a variety of the costs. These might include:
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Costs of notifying those affected by the breach
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Identity recovery and monitoring
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Regulatory fees
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Data restoration or recreation
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Credit monitoring
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System repairs and upgrades
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Public relations services
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Business interruption costs
At the end of the day, the cyber theft was likely beyond your control. Your cyber liability policy can help you restore the business to full capacity with as little threat to your bottom line as possible.
Securing Your Data
Of course, cyber liability insurance will be a great asset to your business when you need it. However, you don’t want to have to file a claim unless you have to , and you certainly don’t want to face frequent cyber liability incidents. It’s usually easier to have strong data security than to deal with the process of making a claim.
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Train all employees in data security literacy. They should know never to leave networks unlocked or share passwords. Teach them what to look for in cases of spam, phishing or cyber hacks.
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Require employees to routinely change their own passwords.
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Back up all data regularly and encrypt your data. Keep your encryption services up to date.
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Use a multi-step authentication process to add layers of security for those trying to access the network.
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When installing anti-virus or malware protection, use a system that is compatible with your computer network.
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Hire a reputable IT service that can keep a close eye on data system performance. They can notify you quickly if data problems develop.
In the event of data theft or cyber hacks, immediately call your cyber liability insurance agent . They can help you determine the best way to proceed with the claim. A quick response on your part can help you minimize the damage.
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