What Your Company Needs To Know About Cyber-Security Liability Coverage

Posted on by agentinsure

Most business owners know that they need insurance coverage for protection due to fire, theft, injury, and liability. However, whether you are a small Buford, GA business or a large corporation, you need to protect yourself from cybersecurity breaches, too. Statistics show that after having their computer system hacked, 50 percent of small companies go out of business. One of the main reasons is because they don’t have data breaches and cyber liability insurance coverage. Keeping your business safe from criminal hacking is key. Here’s what you need to know about cyber liability from Town & Country Insurance.  

Small businesses are a favorite target

While big data breaches get all the headlines, 43 percent of all cyber-attacks happen to small firms, according to Small Business Trends. 

Restoring your reputation is costly

A firm’s reputation drops after a data breach. Your customers may become wary. It is estimated with firms that have been hacked, they lose up to a third of their customer base, on average. It may take a lot of money and years of confidence-building to rebuild your reputation.  

Cybersecurity liability isn’t just about hacking

You could be held liable for any cost that involves loss of data, such as data breached on a customer’s stolen, or lost, laptop or smartphone.  

What Does Cyber Liability Insurance Cover? 

In addition to protection from business losses due to loss of data, extortion, disruption of activity, and computer fraud, a basic cyber liability insurance policy typically covers costs relating to: 

  • Repairing affected computer systems 
  • Notifying authorities and victims who may be affected by a breach of data 
  • Defense against regulatory penalties and fines 
  • Victims losses due to identity theft 
  • Rebuilding your reputation 
  • Lawsuits and class action suits claiming breach damages 
  • Liability for copyright infringement or malicious falsehoods a hacker may insert 

If your business relies on networked technology, you need data breach insurance and cyber liability insurance. Town & Country Insurance has the experience and expertise to help you protect yourself from cyber crimes. If you live in Buford, GA, call us today to find out more about how we can tailor a policy to meet your specific needs.