In today’s ever evolving tech savvy world, a business’s top concern is no longer the run-of-the-mill break-in.
While this is something certainly on the mind of the average business owner in California, they also know that today’s criminals rarely need to leave their homes to get their hands on a brand’s most valuable assets.
During the year 2020 alone there were over 1,000 data breaches throughout the United States and they didn’t solely prey on larger businesses.
Of the 1,001 data breaches, more than a quarter of the victims were small businesses and their customers or clients.
These breaches can result in fines, lawsuits, and massive headaches for business owners and patrons alike.
For smaller businesses, the damage done by a single cyber attack can be enough to run a small business into the ground.
Data breaches come along with a laundry list of costs, but cyber liability insurance can help to cover these costs if the worst should occur.
Cyber liability insurance is one type of commercial insurance that businesses don’t realize they need until it’s too late. Of the many costs associated with a data breach, cyber liability insurance covers:
1. Data restoration – DoS, hacker, or virus attacks can leave behind damage to programs, software, or important data. Your cyber liability insurance covers the restoration of your data as well as the programs that helps to keep that data organized, usable, and protected.
2. Cyber extortion costs – In some cases a data breach may be carried out by a professional hacking organization. In these instances, the hackers may demand a ransom for your data otherwise your data will be destroyed. Your cyber liability insurance may cover not just the costs to get your data back, but the hiring of an expert to carry out negotiations.
3. Crisis management – A big data breach is a crisis and this rings true whether it’s happening to a big business, small business, or anywhere in between. Crisis management costs like the hiring of an attorney to handle your case, tech experts, public relations professionals, and forensic accountants can be highly costly for any business, but they may be covered by your cyber liability insurance policy.
4. Notifying costs – When a data breach occurs, businesses must notify the parties that may have been impacted by the stolen data. Making these mass notifications is costly, but it may be covered as part of your cyber liability insurance policy.
It’s not enough in today’s modern world to simply keep yourself protected on the ground. While brick and mortar protection is important, it’s just as important to keep yourself protected on the web as well.
Before you become the victim of a data breach, having a cyber liability insurance policy in place keeps you ready to clean up any mess.
If you’d like to learn more about cyber liability insurance for your commercial business contact us at Panorama to speak with one of our professional agents today. Call: 818-781-6630