Cyber Liability Insurance
There were close to 8 billion personal records breached in 2019. While not every single breach led to identity theft, each of them could have triggered some sort of lawsuit against the organization that held the data. Cyber liability insurance is designed to protect against lawsuits related to data breaches so that your business can continue to operate. This coverage also helps victims of data breaches recover.
If your business collects personal information of its clients or customers for any reason (payment, Social Security numbers, birthdates, passwords, medical records, etc.) it should be protected by cyber liability insurance. The experienced team at IPA Risk Management, LLC, can review your company’s operations, listen to your needs, and build a policy that offers the best protection possible should a data breach occur at your organization. Call us today at 201.797.1084 to schedule an appointment at our Rochelle Park, New Jersey, office.
What is cyber liability insurance?
Cyber liability insurance is a policy every company should have in an effort to mitigate damages incurred when a data breach occurs. This coverage can help pay the costs of the following services should a data breach happen:
- Have a breach notification report written
- Conduct forensic analysis
- Offer credit monitoring services to those affected by the breach
- Notification of the affected customers
- Pay fines issued by the state in which you operate (some states fine companies per the record affected by the breach)
- Lost income due to a network outage
- Extortion you had to pay to unlock files or recover data
Should one of your customers impacted by the data breach decide to file a lawsuit against your company, the cyber liability policy can cover the costs of legal fees, judgments, and settlements.
Who needs cyber liability insurance?
The easy answer to this question is any company that handles customer information. This includes any company that collects, manages, stores, or manipulates data and any company that hosts customer networks that store the data of customers of the company’s customers.
Even if your company does not host, store, or collect data, cyber liability insurance is still a good idea. This is especially important if you want to avoid scams that target electronic funds transfers and social engineering.
When do I need cyber liability insurance to go into effect?
Not all companies will require cyber liability insurance the minute the company is founded. However, there might be a triggering point where it’s time to purchase this policy and activate it for the protection of yourself and your customers. Consider the following:
- What kind of customer data do you store?
- How sensitive is the data you store?
- How likely is it that your organization will suffer a breach that could lead to a lawsuit or regulatory action?
- Can you afford to face a lawsuit out-of-pocket?
- Does your company have contractual requirements to acquire cyber liability insurance?
The simple way to answer the above question is to tell you that cyber liability insurance should be active the minute a customer completes the very first contact form on your website.
Cost of cyber liability insurance
As with all other insurance policies, there are various factors that go into determining the cost of a cyber liability insurance policy. These factors include the following:
- Number of customers, clients, or patients
- Type of sensitive data and information you store
- Revenue
- Claims history
Why choose IPA Risk Management, LLC, for cyber liability insurance?
There are dozens of insurance companies out there looking to sell you unnecessary policies or extra coverage you don’t need. When you work with our brokerage, we build a policy based on your specific needs. We don’t compare you to any other business in your industry. You pay for what you need, nothing more, nothing less.
The team at IPA Risk Management, LLC, is here to handle your every need when it comes to insurance for your business. Whether you need a business owner’s policy, package products policy, commercial auto, general liability, cyber liability, or any other type of coverage; we will write a policy that provides proper coverage for your business. We build lasting relationships with our clients no matter how long they’ve been with our brokerage. Call us today to find out what our decades of experience can do for your company.
Schedule an Appointment to Discuss Cyber Liability Insurance Today
Does your company collect, store, or manipulate customer data? If so, it’s time to consult with a member of the IPA Risk Management, LLC, team. A data breach cannot be predicted. It can be prevented, but there’s no guarantee that the data you have will never be breached. That’s why it’s vital you have a cyber liability policy active for your business. Call our office in Rochelle Park, New Jersey, at 201.797.1084 to schedule an appointment today.