Is Your Business Responsible for Cyber Liability?

In today’s technological age, cyber breaches are becoming big risks for businesses. If a new installation corrupts your customer database or a hacker gains access to customer credit files, the impending damage control and lawsuits can easily add up to exceed six figures, risking the financial stability of your entire business. Over 73 percent of surveyed businesses state that cyber-risk management (including information losses) is the responsibility of the IT department, putting smaller businesses at a larger risk. Without this front line of defense, hackers may find that smaller businesses provide easier targets.

So how do you protect your livelihood from cyber threats? Cyber liability insurance protects you against the expenses associated with being held responsible for first- or third-party data breaches. These cyber breaches not only cost an immense amount in damages, but they also can ruin your business’ reputation and chase away loyal customers. Cyber liability insurance is designed to protect your business from expenses associated with the following:

• Business interruption
• Auditing and containment
• PR and crisis management
• Customer notification
• Replacement of data or systems
• Government fines
• Cyber terrorism, extortion and libel/slander
• Lost and/or corrupted data
• Introduction of damaging code
• Legal fees for lawsuit defense

You can minimize your business’ risk for cyber breach on two levels. First, follow the industry-standard security best practices in terms of server protection and firewalls. Second, obtain cyber liability insurance; comprehensive coverage is very affordable and can keep your business afloat during a very tough time.