With more and more stories about massive data breaches being published in the news, being uninsured for cyber security attacks is no longer an option for businesses. Data breach insurance helps companies recuperate from a cyber security compromise and covers the financial repercussions, from recovery to litigation.
The Basics of Data Breach Coverage
Many businesses are unfamiliar with cyber security insurance because it is a relatively new coverage that has only become widespread in the past few years. As companies rely more heavily on computers and data networks, their vulnerability to information breaches increases. If a breach occurs, the cleanup can be costly; not only has your company’s secure data been accessed, so too has your customer’s. This can lead to identity theft and other damages that your company may be held responsible for. With third-party data breach insurance coverage, your insurer will likely be able to cover the costs of litigation and settlement fees.
Furthermore, your insurance company may be able to cover loss of productivity during the data recovery period. Data recovery requires professional assistance, and it can take them considerable time to get your business back up to speed.
Don’t let your secure data go uninsured. Should anything happen, you do not want to pay for expensive data recovery out of pocket; consider applying for data breach insurance.