What is Cyber Insurance, and Which Plan Should You Choose For Your Business?

Data leaks and other forms of cybercrime are unfortunately becoming much too common. For a bargain retailer, one of the nation's top banks, a well-known health insurer, an entertainment network, and the federal government, data breaches have resulted in major fines and legal expenditures – not to mention hassles – in the last couple of years.

But major corporations aren't the only ones who can be hacked or infected with a virus. Did you know that 55% of small firms have had at least one data breach, and 53% have had several breaches?

A data breach can harm more than your small business's computer system; it can also harm your reputation and put your customers and/or staff in danger. As a result, cyber insurance can be a wise precaution for any size company.

 

What is cyber insurance?

Cyber insurance covers your company's liabilities in the event of a data breach involving sensitive client data including Social Security numbers, credit card numbers, account numbers, driver's license numbers, and health records.

 

Won’t my general liability policy cover cyber liability?

General liability insurance protects you against bodily harm and property damage caused by your products, services, and activities. A general liability policy frequently excludes cyber insurance.

 

What does cyber insurance cover?

In addition to legal fees and expenses, cyber insurance often covers:

  • Notifying customers about a data breach

  • Restoring personal identities of affected customers

  • Recovering compromised data

  • Repairing damaged computer systems

Most jurisdictions require businesses to notify customers in the event of a data breach involving personally identifiable information, which can be a time-consuming process. Even while most states do not compel businesses to provide free credit monitoring in the aftermath of a data breach, such a gesture can help with public relations.

 

Are you cyber ready?

Cyberattacks are a constant concern, so cyber risk readiness must be a top priority on a daily basis.

  • Educate your employees on how to spot phishing scams and how to avoid clicking on dangerous websites. To avoid business email compromise methods, provide training and set policies.

  • Maintain software security by applying security updates and using anti-virus software. Cybercriminals can gain control of computers by exploiting weaknesses in software applications, according to the FBI.

  • Strong passwords should be used instead of default or obvious passwords. Change passwords as needed to keep anyone who shouldn't have access from getting it.

  • Seek the advice of a cyber security professional. While it's critical that every employee is informed of cyber threats on a daily basis, a cyber security specialist can ensure that your system is as secure as possible.

  • Files should be encrypted. If data slips into the wrong hands, encryption can keep it safe.

  • Backup your files. Having a backup can ensure that your organization can continue to operate if your files are encrypted by ransomware or otherwise lost.

  • Purchase cyber liability insurance in case of an attack.

How to prepare

Cyber risks are on the rise, and now is the time to prioritize cyber risk management. See the U.S. Chamber of Commerce's Internet Security Essentials for Business 2.0 for further information. Don't forget about insurance coverage. Inquire about cyber liability coverage with BNC Insurance's risk management experts. They can best assist you in managing your cyber risk in a cost-effective manner.

 

 

To learn why cyber insurance is essential for corporations in the digital era and which insurance to choose, watch the recording of our most recent webinar.  For more information on optimizing your IT and securing your network, contact RCS Professional Services to speak with an IT professional or visit our website www.rcsprofessional.com. 



 

 

*source: ​​https://www.insurancejournal.com/news/national/2014/11/24/347795.htm

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