As is evident with new data breaches being reported frequently in the news, businesses are targets of hackers and those hoping to steal customer information for their own gain. Regardless of the size of the business, protecting this private information needs to be a top priority among business owners. In insurance, big data can be safeguarded by adding cyber liability coverage, a policy which can be customized to fit your company’s specific needs.
How Does Cyber Liability Insurance Work?
Depending on the policy you choose, there are a number of services offered. Depending upon your business’ level of interaction with private consumer data, it may be more important to have more coverage against a hack of your own systems (first-party) or to protect your customers from a breach of a partner, vendor or service provider (third-party).
What Does Cyber Liability Insurance Cover?
A first-party policy is meant to financially protect your business interests and customers in the immediate aftermath. A policy could include such services as an analysis to confirm a data breach or covering the costs to your customers of a credit monitoring service. With this insurance, big data threats to extort your systems are also available.
A third-party policy, on the other hand, is geared more towards legal fees that could be incurred if a vendor or partner’s data is compromised, leading a customer to sue your business. If you outsource the processes handling customer data, this may be more in line with your business needs.
By adding this policy to your insurance, big data your company has access to is in much safer hands.