If your business handles sensitive customer data (such as credit card or bank account numbers), data breaches pose a serious threat to your financial stability. Cyber Liability Insurance protects startups against the expenses associated with a data breach, which can run into the hundreds of thousands of dollars.
A lawsuit resulting from a data breach means your business is responsible for paying legal fees, court-ordered judgments or settlements, and other court-related costs. In addition, your business will likely have to notify your customers of the breach, provide them with credit monitoring services, and invest in public relations efforts to repair your business’s image. In the absence of Cyber Liability Insurance, these costs can quickly drain a startup’s financial reserves.
Cyber Liability Insurance protects your business’ assets by paying for a legal defense, court-ordered compensation, and other related expenses. In other words, cyber liability coverage allows you to focus on rebuilding and restoring your customers’ faith without worrying about the data breach-related expenses.
Key Things to Understand about Cyber Liability Insurance
The two major types of Cyber Liability Insurance are first-party coverage and third-party defense and liability coverage, both of which are available policies which are accessible by the Maxwell Insurance Group. First-party coverage offers financial compensation to help you address immediate customer and business needs, such as those that result when your in-house IT network crashes.
Third-party coverage protects you in the event of a lawsuit brought by a customer or partner for a data breach that your business’s actions or negligence allowed. Depending on your business’s specific needs, you may choose either or both types of coverage.
Today, cyber hacking is becoming a world wide industry. Hackers can break into your network and can hold your business at hostage. We highly recommend that businesses give thought to purchasing coverage.
The Maxwell Insurance Group can help you evaluate the cyber liability risks that your business faces and we can help you find you a policy that meets your needs. For more information, contact us and we can guide you through the cyber risk that your business faces.