Most modern business owners rely on technology on a daily basis. While this is convenient, modern technology also leaves businesses vulnerable to a myriad of cyber risks, including theft of intellectual property or access to sensitive information. Almost every day, we hear about some high-profile cyber breach on the news report. The reality is any business that relies on computer systems is vulnerable to attack, anti-virus protections and firewalls are not fail safe. Systems and data breach can result in catastrophic loss of income, recovery costs, and expensive litigation. Contact Western States Insurance to discuss how cyber liability insurance can protect you and your business. All businesses today are encouraged to have reliable cyber liability insurance in place. The following guide will explain the value of this decision.
What Does Cyber Liability Cover?
Cyber liability coverage is often broken down into two separate components. First-party coverage protects you against any damage that the business itself incurs. This includes damage to computer equipment, losses incurred due to business interruption, public relation responses to breaches, and the cost for sending notices of a breach.
Conversely, third-party coverage helps you defend yourself against any claims made by a third-party. For instance, your business will be covered against any claims or other legal issues from clients that arise from a breach.
What Doesn’t This Policy Cover?
Exclusions vary based on policies, but damage to people and property, instances of fraud, robbery, and employee theft are generally not covered. Some of these issues, such as damage to people and property, are covered by other types of business insurance. When it comes to criminal wrongdoing, a business may need to implement additional commercial crime coverage to remain protected.
Do You Need a Cyber Liability Policy?
Most businesses these days should use a cyber liability policy. How much liability insurance you need is largely based on the specific details of your business. Consider how much money you would spend in the event of a business interruption, or how much it would cost to replace damaged software and hardware. How would you address breaches with customers? Would someone be available to make a statement on your behalf to the public? Use these answers to determine how much to invest in your policy.
If you need help with your cyber liability policy, work with a knowledgeable insurance agent at Western States Insurance Group, Inc. in Lovington, NM, to ensure you make the best decisions for your business. Because they’re an independent agency, they’re able to find their clients quality insurance plans at affordable prices. They also offer other types of commercial protection, including property coverage and general liability insurance. Call (575) 396-1318 to schedule a consultation. You can also visit them online for a full listing of services.