Purchasing and managing business insurance in NJ is a big job. As a business owner, you’re responsible for understanding your risk and the coverages you...read more
How Can Cyber Liability Insurance Help Mesiadmin January 31, 2020
Cyber liability insurance helps businesses and organizations cover financial losses that result from data breaches and other cyber issues. This insurance is flexible and customizable to the level of protection you need. We recommend cyber liability insurance to any organization that uses computers to send, receive or store electronic data. Information is your most valuable asset, and you don’t want it compromised.
Let’s cover the various ways that cyber liability insurance can help your business.
Recoup losses if your business shuts down temporarily
A good cyber liability policy should include business interruption insurance. This is an important type of insurance to have, as many businesses rely on technology infrastructure to operate. Therefore, if your information is compromised, you may need to shut down operations until things are fixed. Rather than losing money, business interruption coverage helps recoup your losses.
Offset expenses from a data breach
Given how unpredictable data breaches are, it’s difficult to budget for these situations. Some data breaches are costly and may include fines from several regulatory agencies. Thankfully, cyber liability insurance helps cope with these unexpected losses. These insurance policies typically cover things like investigations, legal fees, identity monitoring, identity restoration services, regulatory fines and legal settlements.
Provide resources to respond to a data breach
Some insurance carriers have preferred vendors they can refer you to in the event of a data breach. These services may include a breach coach and legal attorney. Because your reputation is already on the line, it’s important to choose your resources carefully. Many businesses prefer to use referrals and preferred vendors because they’re more efficient and may offer discounts.
Coverage for first-party and third-party expenses
First-party expenses are costs that your company incurs immediately after an attack, such as damaged software or the cost of notifying the public. Third-party coverage helps pay for your company to resolve lawsuits and legal claims. Cyber liability insurance in NJ includes first-party and third-party coverages and possibly risk mitigation services to help you stop a breach before it happens.
As technology becomes increasingly important for businesses and organizations, the need for cyber liability insurance will grow. To learn more about how much a cyber insurance policy will cost your business, contact Soden Agency today. With our independent insurance agents and attentive service, we can find a solution that fits your needs and budget.