Connecticut Cyber Liability Insurance
Although continually evolving to keep up with risks in the online marketplace, Cyber Liability continues to be a coverage that every business should consider.
Hackers come in many shapes and sizes and have various reasons to disrupt your business. Some use a virus known as ransomware to extort payments from the computer owner, while others hack systems to steal sensitive information that can be sold on the black market. Regretfully, it is no longer if your data is stolen, but when your data gets stolen. Knowing this, every business should consider Cyber Liability coverage to transfer the risk of financial losses that result from a data breach.
There are many product packages available in the marketplace, so business owners need to consider only those products that address all the financial risks that can result from a breach.
This coverage reimburses the victimized business for the expenses incurred for providing notification to all customers that a breach has taken place, which is typically required in every jurisdiction.
Credit Card Monitoring Service
Coverage is available to reimburse the victimized business that is required to offer free credit card monitoring service to affected customers.
Businesses who have suffered a data breach will typically suffer from significant damage to their reputations and may need to hire a public relations specialist to help rebuild and repair their reputation in the marketplace.
The jurisdiction in which you operate is likely to require a costly forensic analysis of your systems to detect the manner in which the breach took place and require your business to implement expensive safeguards to prevent it from happening again.
Defense and Settlement Costs
Your policy will pay the defense and settlement costs if you are sued for failure to prevent unauthorized access to, or use of, a third party’s personal information. This action alone can bankrupt a small business without cyber liability insurance.
It’s important to understand that Cyber Liability Insurance cannot prevent data breaches from taking place. But it can help your business prepare for and respond appropriately when a data breach occurs. Not if, but when.