Cyber liability insurance demand is growing, and with good reason. Many companies, even small businesses, should consider cyber insurance because of the numerous benefits it can offer. More people are using credit cards or providing customer data to companies. And with every swipe of a card or detail entered into a database, there is an increased risk that customers’ information could be breached. These are a serious threat to your company's financial liability.
Where is the Risk?
Many business owners believe the risk of a data breach is low. However, the instances of data being stolen from companies with some of the most advanced levels of security continues to occur. If insurance carriers, large corporations and retailers are facing these risks, they could possibly occur on your end as well. A single lawsuit over a data breach—even if it is minor—can lead to significant loss to your business. Thousands, if not millions of dollars in loss from a lawsuit, payment for ongoing credit monitoring for those customers and even the public relations nightmare it creates can financially stress any company.
Cyber Liability Insurance Can Help
Cyber liability insurance is one of the most important newer forms of business insurance. There are two components of this type of insurance. First party coverage and third party defense and liability coverage are equally valuable to your company.
- First party coverage helps you financially to deal with the business and customer needs when an event occurs. This may include helping you with your IT network within your company.
- Third party coverage protects you from lawsuits brought against the company for a data breach that you are found to have negligently allowed to occur.
Your insurance carrier can also step in to provide you with the support you need in the event of such an occurrence, such as knowing what to do when a security breach occurs, evaluating the extent of the problem and preventing problems from occurring in the first place. Today's small business needs cyber liability insurance as much as it needs any other type of business insurance. Don't allow a risk like this to cause the shuttering of your company because a would-be thief broke into your customers' data. No matter how safe you believe your data is, insuring that risk is essential.
Are you covered? Call CSP Insurance Services at 843-519-2557 for more information on South Carolina cyber liability insurance.