Today, an internet presence is a necessity. Online services expand constantly. Businesses of all sizes are collecting credit card information and assembling customer databases. This exposure leaves businesses open to liability. When data is collected is collected and distributed by a business, that company assumes responsibility for the accuracy and safety of that information. That means if customer data is stolen or lost, a business could face significant liability and possible regulatory action.
The Importance of Insurance
If your business has a website or stores sensitive customer information, data breach insurance coverage is a must. Although it is typically big companies that make the news, over 50 percent of all cyber-crimes are committed against companies with less than 100 employees. Most general liability policies specifically exclude loss due to online activity. Cyber liability insurance, on the other hand, covers server infrastructure damage, fines, penalties and actions related to client data. Even if the control of your system is offsite, you are still responsible for any breaches.
What to Look for in Insurance
Many policies can be tailored to your specific needs. This is usually achieved by add-ons. A core data breach insurance coverage policy should always include protection against data corruption, loss of business income from document attack and data loss or theft. Talk to an insurance provider to discover what other policy plans might benefit your business.