Although cyber liability insurance has been around for years, in light of recent events, it’s become more important than ever. Major data breaches like that of Target and eBay have made headlines, but smaller businesses of all kinds, from doctors’ offices to retail stores, can also take a hit if they don’t protect themselves. Any business that uses technology is susceptible to a data breach or security failure. These cyber breaches can compromise your confidential information—including that of your clients, partners, or customers—which can lead to severe consequences.

As data thieves become more skilled, more robust precautions are needed to stave off these threats. Fortunately, cyber liability insurance is an effective way to boost your protection. Here are a few considerations that will help you determine whether you need cyber liability insurance:

• Technology Use: If you have a website that the public interacts with, then cyber liability insurance is a good idea. Data thieves target businesses of all kinds, so the mindset that it can’t happen to me doesn’t really apply to this situation.
• Existing Insurance: Business liability insurance is an excellent investment for any company. Unfortunately, though, these policies don’t cover cyber liability right now; however, if you purchase from the same insurance agency, you may be able to get a discount. Due to the rapidly changing nature and complexity of digital communications, it will probably remain under a separate policy for the foreseeable future.
• Fiscal Considerations: Investing in commercial insurance is a smart fiscal move for your business. Regular payments will cover funds in case of lost sales, legal settlement fees, and many other financial stressors that may otherwise irreversibly impact your business.

To protect your business from cyber breaches, contact the experts at Consolidated Agency in Rochester, NY. For more information about how this agency can help you, call today at (585) 467-4110 or visit the website.