Cyber Liability Coverage Options: Tailoring Protection to Your Business Needs
Do you store data in the cloud, take online payments, or communicate digitally? If you run a business in the Internet age, you probably answered “yes” to at least one of these, which means you’re also vulnerable to cybersecurity breaches. Fortunately, cyber liability policies can protect companies from the fallout of compromised systems. Knowing which coverage works best for your industry risks is the key to keeping your business safe.
What Does Third-Party Cyber Liability Cover?
When customers input their contact or credit card information into your website, they assume you’re taking every precaution to safeguard their data. To them, this information is their life. If it gets into the wrong hands, it can ruin their credit. Furthermore, it could bar them from home ownership, starting a business, going to college, or fulfilling other dreams.
You take every precaution. However, cybercriminals try to stay ahead of security measures and sometimes succeed. When that happens, you may face civil action.
Protecting your business from cyber liability ensures the company doesn’t eat those expenses. Policies generally cover regulatory costs, settlement costs, and legal fees.
What Does Technology Errors and Omissions Insurance Cover?
Technology errors and omissions insurance generally applies to tech companies and other software or hardware enterprises. E&O covers liability from poor design or workmanship; in the tech industry, that means faulty systems that leave holes for hackers to slip through.
Generally, technology E&O offers the same coverage as third-party cyber liability policies if you sell your software online. You may need both.
What Does First-Party Cyber Liability Cover?
First-person cyber liability insurance covers security breaches that affect your company’s data systems. Ultimately, this could include a takeover of operating systems or unauthorized access to sensitive data.
These issues will undoubtedly affect your customers, business partners, vendors, and other third parties, but this form of cyber liability coverage helps manage the direct impact on your company.
If cybercriminals take over your systems, you’ll likely have to slow or cease business while you deal with the problem. Unfortunately, it can cost you thousands or millions of dollars, depending on the time it takes to settle the matter. First-party cyber liability coverage pays for the income lost during business interruptions. It also provides the resources necessary to get your company back up and running. Therefore, it could include employing a crisis management team, renting equipment, and hiring additional staff.
If cybercriminals take over your systems, you’re likely the victim of ransomware. This malicious software allows hackers to hold your computers hostage until you meet their demands. Sometimes, criminals will wipe your system if you don’t comply.
The quickest and cheapest way to regain control is to pay the ransom. Cyber liability insurance covers this cost, allowing you to return to work without losing millions or starting your business from scratch.
Finally, cyber liability policies cover the costs of responding to data breaches. For instance, customers expect free access to credit monitoring services so they can address fraudulent charges immediately. Someone has to pay for that and the thousands or millions of notifications to affected customers. With the right insurance, your business won’t bear the financial brunt.
About Byrnes Agency
At Byrnes Agency, we offer insurance solutions that can be tailored to meet your specific needs. Whether you’re looking for personal policies or commercial coverage, we have the right coverage for you. To learn more about our products, contact us today at one of our two locations.
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Phone: (860) 774-8549
394 Lake Rd
Dayville, CT 06241
United States
info@byrnesagency.com
Hours of Operation: Monday- Friday 9:00am-5:00pm
Phone: (860) 886-5498
6 Consumers Avenue
Norwich, CT 06360
United States
info@byrnesagency.com
Hours of Operation: Monday- Friday 9:00am-5:00pm