This is why an increasing number of companies are seeking cyber liability insurance. Look at your insurance policies to ensure they provide protection from current risks.
What Is a Data Breach?
Cyber liability insurance, sometimes called data breach insurance, provides a layer of security to business owners faced with instances of data loss. Data breaches occur when any third party gains access to sensitive information in an illegal manner exposing company secrets, employee information, or customer information.
If a business experiences a cyber attack, insurance can help not only provide protection of the individuals involved but also to help the company to overcome the reputation loss.
How Does Cyber Liability Insurance Help?
This type of insurance provides several tools to help companies overcome the losses from data breaches. Some of those protections include the following:
- It can provide a quick response when the data breach occurs. This allows the company to minimize ongoing threats and address the problem immediately.
- It can help a company prepare for a future data breach so the company can avoid it. This may mean ensuring there is ample protection in place to minimize network security issues, employee training concerns, or network policy adherence.
When a data breach occurs, the first step for a company will be to call their business insurance provider. The insurance provides help in stopping the problem from occurring, gathering support for customers, providing identity management tools if needed, and helping to recover the lost reputation of a company.
A data breach can occur in any type of business. There is no way to prevent it from occurring in every instance. Yet, with the right insurance, your company does not have to shutter its doors when this type of event occurs. It is possible to find the financial support you need. It’s important for companies to recognize the value of this type of policy.