Some of the largest brand names on the Internet have fallen victim to cyber attacks, which led to the personal information of millions of users being exposed. There are thousands of companies all over the world making online transactions every day. This means that the number of potential risks is steadily on the rise. You cannot rely on your company’s general liability insurance policy to be adequate to cover the damages if a data breach ever occurs within your system.
Most of the time, the commercial insurance policy that you have in place is not going to provide you with the proper amount of coverage for the many claims of liability that can arise when customer or employee data is lost, stolen or compromised. Even if you have taken the extra measures to include directors and officers insurance in your policy, it is not likely that you have sufficient coverage to pay the costs associated with a data breach.
The most unfortunate fact is that in the majority of cases, data breaches are not discovered until the damage has been done. When this occurs, it is too late to get in front of the ordeal and prevent significant financial loss and damage to your company’s reputation.
The only defense that you have is to let NorthEast Insurance Services help you find a Cyber Liability Insurance policy that will help you recover the damages. With the right type of policy in place before disaster strikes, you will be able to keep your business afloat while everything is sorted out and returned to normal.
Do You Need Cyber Liability Coverage?
It is obvious that the higher-profile companies that everyone recognizes are going to be at the greatest risk. The larger the brand name, the more the customers, the more damage that there is to be done. This certainly does appeal to those who wish to do malicious cyber activity.
Unfortunately, most smaller companies do not have the necessary resources to take the same preventative measures as larger businesses do. Therefore, it is the smaller companies that are the largest targets for a cyber attack.
In addition, there are a large number of companies that do not understand just how devastating a data breach can be to their business. The fact is that a single attack can be all that it takes to bring down even the most successful business.
The High Cost of a Data Breach
The cost of the aftermath of a data breach of any size can be quite extensive. Without the right Cyber Liability Insurance policy in place when your company is attacked, you could lose everything in the recovery process.
First of all, you have the attack itself to deal with before you move on to all of the other problems that you will have to face. You need to find out who broke into your system or how the data was lost in the first place. Then you will have to determine the extent of the damage and the measures that must be taken to recover the lost or damaged data, in addition to preventing such an incident from taking place again.
Next, you have to deal with the affected parties. You have to determine which of your customers, vendors and employees have been exposed by the attack on your system. Then, you have to notify all of these people to let them know that they are at risk of identity theft, fraud and all other risks that are associated with such an incident.
You will have to cover:
- The cost of credit monitoring for all of the affected parties.
- You will also have to pay to defend your company against any legal claims that arise from the incident.
- You will also have to cover the cost of court fees and any settlements that are awarded to the plaintiffs.
Finally, you have to rebuild the reputation of your company. You have to invest in a wide variety of advertising and marketing to get the word out that your company can be trusted. Such an attack will show the world that you are vulnerable and they will not be as willing to do business with you because they do not want their personal information on a system that has been previously attacked.
If you do not have a sufficient Cyber Liability Policy to help you pay for all of these things, you could end up closing the doors of your establishment forever. Do not take such a giant risk by leaving your business open to such attacks without an insurance policy on which you can rely, to be there for you when you need it. Get started right away by filling out the quote request form now to get the valuable peace of mind that you deserve.