Technology is an ever-growing world, so it should not surprise anyone to hear that this is an asset when trying to conduct business. While computers are essentials to business success, there is a downside, which is why it is important to have a cyber insurance policy in place. Following are some reasons to help you understand what this type of insurance is and why you need it.
What Is It And What Does It Cover
A cyber insurance policy is one that is intended to help businesses cover costs that are associated with cybersecurity breaches and similar events. For instance, if you own a company and a hacker gains access to customer information, there is a long and expensive journey that lies ahead, and having a policy in place will help you offset the cost. What is covered typically includes legal fees, a forensic investigation, business losses and things like credit monitoring in the event information was compromised.
There are two types of coverage available, first party and third party, and you are generally given the option to choose whether you would like to have one or the other, or possibly even both. At this point, there aren’t any businesses that have a legal requirement to implement this, but it is in their best interest.
I Don’t Sell Things On My Website. Do I Still Need Cyber Insurance?
Businesses that do not offer products and services for sale on their websites should still opt for cyber insurance coverage. Even though you are not as reliant on the Web as someone who runs an e-commerce site, there are still many aspects of your company that involve technology and you want to make sure that there are no issues as far as that goes. If you use computer software or hardware in order to conduct business, there is always a chance that you will be a target at some point.
If you need specifics, here are some areas of your business that you will have to focus on keeping secure:
– All of your servers, including those that are used for email.
– POS systems
– Software that is used to help calculate quotes
– Accounting programs
This is all in addition to anything you use that does not have a backup. Since you are the one who is operating a business, responsibility for protecting all of this rests on your shoulders.
What Is Third Party Cover?
While this was briefly touched on earlier, it was not discussed at length, so here goes. Third party cover is when you purchase a policy that will cover others in the event there is a security breach. While your company may have incurred some damages, one of the main things you need to be concerned about is how this impacted others. In some cases, people become angry because of their data being compromised and they decide to take legal action. Third party coverage will help with expenses that are associated with the legal process, like court fees and judgments.
Keep in mind that data breaches are not the only thing you will have to worry about when it comes to legal matters involving customers. Other concerns include confidential information being leaked by an employee and someone suing you for copyright infringement. This insurance will help you pay for a lawyer as well as assist when it comes to making payouts. In cases where no monetary judgment is issued, it may cover things like credit monitoring services. This is particularly common in cases where there has been an unintentional data breach.
Call Us Today For All Of Your Insurance Requirements!
Trying to handle something like this on your own is not only complicated, but it can often be fruitless. Imagine putting in many wasted hours and having things end on a terrible note. For instance, there is always a chance that you handle the financial aspects of the situation terribly, which can result in bankruptcy or closure of the business. This is what you are trying to avoid and that is why you should do yourself a favour and get in touch with us right away.
We understand how difficult it can be to shield one’s business from ruin and we are trying to assist you before things ever go that far. Instead of sitting around and waiting for things to go from bad to worse, we are more focused on being proactive and taking care of things on the back end so there is much less to deal with at a later time.
Instead of trying to handle this without help, you should get in touch with us today. The sooner you discuss cyber coverage with us, the sooner you can relax knowing that you will be perfectly safe in the event something unexpected occurs. Give us a call today for an obligation free quote!