Recently, data breaches have escalated, making all organizations reliant on technology vulnerable. A robust cyber security incorporates cyber insurance to help your organization weather the storm when network security or data breach occurs. A data breach or network failure not only damages your computer system, but may also damage your reputation and put your employees and clients at risk. It is imperative that organizations who need IT services understand the scope of cyber insurance in case of network failure.
In case of a data breach, your business needs to alleviate the risk of civil process and other consequences. Having a data breach insurance policy will assist your organization to comply with applicable laws and regulations.
What is Cyber Liability?
Cyber liability insurance assists your business to cover the costs of information security breach such as public relations, identity protection solutions, liability, legal fees, and more.
Things to Consider When Choosing Cyber Security Coverage
- Response time when a breach occurs – In order to minimize the impact of a data breach on your clients, employees, and the organization, your response needs to be quick and swift. The policy should enable your business to meet the laws and regulations and communicate effectively with the persons affected by the breach of data entrusted to your organization.
- Preparation assistance in case of breach – It is important that the coverage includes access to services that will help your organization prepare for a breach through ensuring that adequate security measures are in place before a breach occurs. These services may include incident response planning, employee training, establishing network policies and procedures, and managing the organization’s assets.
Why Your Business Needs Data Breach Insurance
Cyber security experts believe that data breach is inevitable no matter the scale or size of the business. The modern world is becoming more connected and data thieves have become more adept, meaning the need for more data security. When your business saves employee data on a network, it is susceptible to virus attacks which put your entire operations at risk. If your organization keeps clients records such as credit card, medical history, social security numbers, and bank accounts in its database, the risk of being hacked is real and compensating the clients will be very expensive.
With cyber liability insurance, your organization will receive covers of first and third-party risks that are related to online business. Your organization will be covered from viruses, online intellectual property infringement, and privacy issues.
What If Your Data is handled by a Third Party?
Whether you store your data in the cloud or with a third party, you are legally responsible for ensuring the data is safe. Since no data storage system is infallible, your organization will be protected even if your third party host was to suffer a breach.
What If you have a Business Liability Insurance?
The standard business liability policies do not cover cyber data breach. Most insurance companies do not include cyber liability with business liability because the policies and procedures around digital communications change very fast.
At Idealstor, we offer a holistic solution to cyber security that not only helps you prevent cyber threats, but ensures your but takes action when a breach occurs. Contact us to learn more.