Cyber Liability Insurance Explained

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Businesses have many regular expenses they must cover, including insurance costs. It’s normal for businesses to pay for health insurance, life insurance, key man insurance, workman’s compensation insurance, liability insurance, vehicle insurance, and cyber liability insurance.

To determine whether your business needs a cyber liability policy, it’s necessary to understand what cyber liability insurance is and how it can protect your company.

What is cyber liability insurance?

Cyber liability insurance protects your company if there is a data breach. When data breaches occur, unauthorized parties can gain unlawful access to your clients’ names, addresses, credit card numbers, email addresses, and any other personal data your business stores. Hackers can also access any information you store about your employees and vendors.

In 2018, 6 million people were victims of cybercrime. A cyber liability policy protects your company from the cost of an unlawful breach and potential damage to your business and electronic data. It doesn’t matter what type of business you operate; these policies protect retail stores and online vendors.

What does this type of policy cover?

Cyber liability policies pay for the cost of the breach. There are several expenses businesses incur when data is compromised. Staff will need to notify all parties who may have had their information stolen. It may be necessary to replace or repair data following a breach, which can be time-consuming and expensive. Cyber liability policies cover this cost. Cyber liability insurance will also compensate your business for income that is lost due to a data breach.

Hackers may also hold your data hostage. Hackers can disable your network so that you cannot gain access to your data or threaten to release a virus that will destroy your files. Cyber liability policies will also cover the cost of the ransom you pay to regain control of your data.

Do companies need extra insurance for lawsuits?

Cyber liability policies can also cover the cost of lawsuits that stem from a data breach. Clients, employees, and vendors may pursue compensation. Your company’s cyber liability policy can cover the cost of the settlements and your legal fees.

It’s also possible to opt for a cyber liability policy that covers the cost of regulatory fines.

How can you get the best rate on insurance?

Take time to compare business insurance with iSelect to ensure you have a comprehensive cyber liability policy that fits your business needs. iSelect can present you with all of your insurance options, what each insurance policy covers, and the policy’s cost. It may be possible to save money by bundling your cyber insurance policy with other business insurance policies, such as general liability insurance and commercial auto insurance. iSelect partners with BizCover to ensure you get comprehensive information that will enable you to make an informed decision when you Compare Business Insurance options.

What measures can businesses take to prevent cybercrime?

Invest in data encryption tools that will encrypt sensitive data. You can also secure data by securing your company’s computers. Use lock ports to prevent computers from being removed from your business, which will prevent theft of your property and the data stored on the device.

Have IT specialists determine which online activities are appropriate and which activities should be prohibited. Draft a specific Internet policy and explain it to all staff to ensure they are not using high-risk sites or engaging in at-risk behavior when they are online.

Are there other ways to protect your business and clientele?

Partner with shipanon.com to provide secure, confidential shipping services to your clients. Customers can have their parcel sent to a ShipAnon address, which means that ShipAnon staff receive the package and notify the client when it’s received. ShipAnon’s delivery service prevents people, weather, or animals from damaging delivered parcels. You will also save money because you will not need to track or replace merchandise lost in the mail. This delivery service maintains confidential records, and clients never need to worry about the company selling their data.

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