What is Cyber and Data Breach Liability Insurance?
Besides the typical physical risks to your business, like property damage and injuries, you also face risks from technology, including cyber attacks and data breaches.
Cyber and data breach liability insurance is available to protect against these risks.
If your business collects and stores personally identifiable (PII), personal health information (PHI), or financial information like credit card and bank account numbers from customers or patients, then a cyber liability and data breach insurance policy can help your business prepare for, respond to, and recover from technology-related risks.
A data breach can happen, for example, when a hacker breaks into your network, or an employee loses their laptop that contains customer PII or PHI.
Organizations in the healthcare, education, manufacturing, or financial industries, among others, may especially be susceptible to cyber attacks or data breaches and may want to have coverage in place before something happens.
Benefits of Cyber Liability and Data Breach Insurance
A cyber liability and data breach insurance policy can help if your business computers get hit with a virus that exposes private or sensitive information, your business is sued for losing your customers’ PII or PHI, or your business takes on public relations costs to protect its reputation after a data breach.
Coverage may help pay for notifying customers and patients of a data breach, hiring a public relations firm, regulatory fines from state and federal agencies, and credit monitoring services to victims.
A policy may also replace lost income if your business can’t operate after a data breach and cover extortion costs if a hacker steals your business data and demands a ransom.