The importance of cyber liability insurance coverage for every company
By: Chase Carlisle
Many business owners have heard the term, “cyber liability,” without fully knowing what it means. We live in a world where everyone’s information is accessible online and data breaches are becoming increasingly frequent. Therefore, everyone should learn the definition of cyber liability coverage and why it is an important part of every business insurance plan.
Cyber liability insurance protects you in the event of a cyber attack. Cyber liability insurance coverage, or CLIC, insures you against potential liabilities resulting from unauthorized access or use of your company’s electronic data or software. Essentially, CLIC will protect you and your company if a hacker obtains access to your customers’ information, or any of your company’s data. In addition, CLIC provides coverage for computer viruses, theft and mistakes made by employees.
Today, many companies store their valuable assets and material online. Information such as customer lists, books, financial records, receipts, tax documents, intellectual property and more are at risk if anyone gains unauthorized access to your company’s network or data.
Companies should protect their information and the information of their customers. Thus, CLIC is extremely important for small and large companies alike. Even if your company’s information is hosted by an outside contractor or stored in a data cloud, you will be liable for the loss of that information in the event of a data breach. You cannot always control how outside companies will handle your information. If they make any mistakes, you will pay if you are not covered by CLIC.
So why should you buy CLIC for your company? Most general liability policies for companies do not include losses that happen online or on a computer. A good CLIC plan can cover every bit of technology, including mobile phones, to ensure your company is covered in every way possible. Adding CLIC to your current general liability plan not only is economical, but also can end up saving your business during a crisis.
Business insurance policies are built around the needs of a company. CLIC can be customized to cover any and every potential issue for your business. Some companies offer first party coverage in which the insurance agency will pay you for the interruption of your business and the cost of notifying customers during a potential breach. This type of coverage can even protect your company from any fines or penalties you may face because of a data breach. An insurance plan such as this would ease the burden off of your company so that you can focus on fixing the issue, rather than managing the difficult effects of the problem.
Cyber liability is still a relatively new concept as far as business insurance goes. As the Internet grows larger, all companies must recognize the importance of understanding their cyber security needs. More importantly, all companies should make sure that in the event of a data breach, they are covered. Talk to Carlisle Insurance to see how you can add CLIC to your plan and work to better protect your customers and information.
For more information, visit Carlisle Insurance online at www.carlisleins.com.