Data breach insurance can help protect you from financial loss
Sensitive data is leaked every day online. Whether it is a hack or an accident, data breach insurance can help to protect your company from financial loss resulting from breach-related legal action.
Types of Breach Insurance
There are two different types of insurance that can protect your business from a breach.
Cyber Liability Insurance – This comprehensive insurance covers expenses related to investigations, equipment replacement, notification, credit monitoring, and legal fees.
Data Breach Insurance – This policy type normally covers notification expenses and credit monitoring fees.
Many insurance companies allow for customization, to include extortion, prior acts, and/or business expense. The cost of these policies can vary depending on many factors, including the size and type of your business.
Choosing your insurance policy
At the end of the day, all states have laws in place to protect consumers from data breaches. Companies are required to notify customers if they suffer a breach. Cyber insurance can help to cover the expenses that go along with these notifications and any legal fees that result.
It is important to speak with a professional before choosing a policy, elect the coverage that works the best for your business, and read through the entirety of the policy to ensure it covers what you think it covers.
