Finding The Right Cyber Liability Insurance

Most, if not all, businesses are using computers nowadays. The device has become integral to sending, receiving, and storing data. These may include tax records, sales projections, and other business-related information.

Cyber Attacks

Computer systems for businesses may also contain sensitive data belonging to other parties like employees, suppliers, vendors, and even customers. So, if a company’s system gets compromised, it may have to deal with damages and additional expenses.

Data breach has now become a major concern for many entrepreneurs in California. In fact, the number of there were more than 31,000 recorded cybercrime incidents worldwide in 2019. Those with confirmed data loss reached approximately 4,000 in the same year.

Protecting the Company from liability

So, what can you do to protect your business against the costs due to data breaches?

Well, for many companies the answer is to have a cyber liability insurance policy. Generally, it refers to a type of insurance that was designed to help organizations mitigate risk exposure. That means that it will be a way to offset the costs to recover after a cyber attack. While it will not help prevent attacks, it will help maintain a stable financial footing after a security breach.

Finding the Right Policy

Choosing the right cyber liability insurance can be tricky. With many options available in California, it may be hard to find the best one. 

To help you get started, here are some things a company can do to find the right policy:

Cyber Risk Assessment

The first thing a company needs to do is to assess its cyber risk. Figure out what aspects of the business are at risk. Is the company dealing with payment card information? Does it conduct wire transfers often? Does it keep its sales figures and other similar data in its computer system? All of these questions are vital in assessing a company’s cyber risk.

Personalized Quote

Get a quote based on the needs and circumstances of the company. When it comes to insurance, there is no one-size-fits-all plan. That is because each organization has specific needs. Cyber liability insurance will not do any good if it is not the right fit. Take time to understand the proposed policy. Make sure the coverage relates to the company. If anything is unclear, do not hesitate to ask the insurance agent or a lawyer.

Policy Terms

It is also important to read and understand all the terms in the proposed policy before signing it. This way, you can be sure that your company is getting the most accurate plan. It would also prevent any misunderstandings or issues in the future.

Responsibilities

The company will also have responsibilities under an insurance policy. Make sure you know all of those things. For instance, the company needs to know what it should do in case of a security breach. Who should the company notify? What are the things necessary when filing a claim? 

Contact us

Having the right insurance policy can help a company recover from a big loss due to a data breach. But, having the right partner will ensure proper protection. Contact Panorama Insurance to learn more.