Does your business handle sensitive customer or employee data, such as credit cards numbers, bank account information, or Social Security numbers? If so, your business has a potential for liability and/or property loss if there were to be a data breach or network security failure.
Many business owners think that their standard General Liability policy will cover the risk of hackers stealing their sensitive employee and customer data. However, court cases have shown precedent that cyber risks are not covered under the General Liability policy’s Personal & Advertising Injury coverage. Insurance carriers are going even further and adding exclusions to their policies. These endorsements further clarify that the General Liability policy is not meant to cover cyber liability risks.
So what else can a business do besides encryption and hiring another IT specialist? One of the most logical solutions to protect your businesses’ assets is Cyber Liability insurance. With a Cyber Liability policy you can protect your business from expenses that result from a data breach and more.
Cyber Liability polices pack a lot of coverage into one policy. The following coverages are usually available to most businesses:
Operating a business in today’s society is a lot different than 10, 15, or 20 years ago. Businesses today use mobile apps to take client payment information and store sensitive client information on cloud servers. We urge any business that stores or has access to sensitive information to review their security measures with an IT expert and to consider covering their business with a Cyber Liability policy.
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