Many people believe that large companies face the greatest cyber liability risks—a belief that grew stronger after the recent Target data breach. But, in fact, it’s startups and small businesses that are the most vulnerable. Why? Thousands of these businesses possess sensitive customer information, such as credit card numbers, medical records and/or Social Security numbers. And, because smaller businesses typically have fewer resources, they tend to have fewer security measures in place to protect customers’ personal information.
Hackers are commonly known as sources of security threats, but they’re not the only risk factor. A stolen company laptop, a document that doesn’t make it into the shredder or unauthorized access by a vendor could also create a security threat. If a data breach does occur, it could rock the financial stability of your business, often costing tens or hundreds of thousands of dollars.
But you don’t have to face the risk alone! Cyber liability insurance is designed to protect businesses from the expenses associated with a data breach. What does this mean? A data breach doesn’t have to bankrupt your company. In fact, while your coverage funds the expenses, you can focus your attention on cleanup efforts.
What does cyber liability insurance cover?
· Digital forensic services
· Customer notification and identity theft monitoring services
· Public relations and good faith advertising to repair your image
· Legal fees and settlements
The two types of cyber liability insurance include:
· First-party coverage: Covers immediate customer and business needs
· Third-party coverage: Covers legal needs
You can choose which coverage you wish to purchase or select them both. But even with the right coverage at your side, the best thing you can do is implement protocols designed to prevent data breaches. Some of these protocols may include the use of passwords distributed on a need-to-know basis, installing secure firewalls, setting up a virtual private network (VPN) connection for remote access and thoroughly training employees on the best practices associated with handling sensitive information.
Learn more about protecting your cyber liability risks. Call La Familia Insurance at (888) 751-7511 for more information on Dallas business insurance.