Have you considered getting cyber liability insurance for your business in La Canada Flintridge, California? While cybersecurity risk is often overlooked, it poses a huge threat of loss to most companies. If your business collects, stores, processes, or utilizes personal data from your customers, employees, business partners, or any other parties, you never know when hackers may target your databases or information systems for an attack. Read on to learn how to properly protect your business with cyber liability insurance in La Canada.
What Is Cyber Liability Insurance?
Cyber liability insurance is a policy that shields enterprises from losses resulting from a cyberattack, such as data breach or denial of service. It can cover data breach costs like legal claims and business interruption. There are different types of cyber liability coverage options that any business that collects, keeps, or transmits sensitive data on-premise or in the cloud should have.
8 Cyber Liability Insurance Coverage Options
Here are some insurance coverage options for your enterprise in La Canada.
1. Prior Acts Coverage
Most standard insurance policies cover claims arising from incidents that took place during the policy period. However, prior acts coverage may protect your business from attacks that started before you bought your cyber liability policy.
2. Reputation Damage Expense
Your reputation can suffer after hackers have breached your databases and stolen or exposed sensitive personal data. As such, you may incur costs for marketing and public relations to preserve your company’s image. You can offset such expenses with reputational damage coverage.
3. Forensic Specialist Expenses
Some policies may cover the cost of hiring forensic experts to investigate a data breach, help repair the damage, and even implement preventive cybersecurity measures.
4. Paper and Electronic Data Coverage
You may need your cyber liability policy to cover both paper and digital data. This way, insurance can compensate for the cost of replacing or restoring manuals and electronic files lost in an attack.
5. Liability Coverage with the Same Company
Many standard liability insurance policies don’t include cyber liability in the same package. However, the company that provides you with liability insurance may agree to cover data breaches under the same umbrella. You can ask your insurance agent about the possibility of bundling your liability policies.
6. Loss Control and Mitigation Services
After a data breach, it’s your responsibility and in your best interest to take the necessary steps to minimize damage to victims. That may entail paying third-party firms to help with cyber risk audits and impact assessments. You may also incur costs for data breach notifications and enlisting credit monitoring services. These are some of the expenses that cyber liability insurance in La Canada may cover.
7. Business Interruption
Some cyberattacks may temporarily make it impossible for you to provide all or some of your services. Affected customers may sue you in turn. For example, if cyber criminals took over your network or website in a denial-of-service attack (DoS), you may be unable to fulfill contractual obligations to your customers. Many cyber liability policies cover business interruption to protect companies against financial loss in DoS attacks.
8. PCI (Payment Card Industry) Coverage
PCI coverage can shield you from loss if you suffer a data breach associated with your credit card transactions or data. Typically, credit card brands expect businesses to use their platforms to meet certain PCI security standards. If an audit reveals that your non-compliance with these standards contributed to the data breach, you may be fined. PCI coverage can take care of the fine or penalty assessments.
The risk of hacking and breach of private data is real for most businesses in La Canada Flintridge, CA. For help finding the right insurance protection for your company, contact the experts at Knight Insurance Services today. We’re happy to guide you through the process of acquiring a comprehensive cyber liability policy.