In our increasingly technical world, it is important to insure your data. Whether you are only dealing with your own data or that of someone else, data loss insurance is incredibly important. There are a few different types of data loss scenarios that this type of insurance covers.
First Party Response
If your secure data is compromised, this type of coverage is your first line of defense. It allows you to notify your customers of a breach and helps make sure their data isn’t used. First party response coverage involves financial support for the immediate needs of your clients and customers. It provides funding for customer credit monitoring, business interruption expenses and any expenses incurred due to having to notify your customers in the event of a data breach.
Third Party Defense and Liability
If your data is breached and a customer brings a lawsuit against your company for the ensuing damages, third party defense and liability coverage is there to help. This type of insurance pays out if you are sued due to a customer’s information being released and used. These types of lawsuits can bring damages against your company, as well as legal fees for both parties. Defense insurance can help cover those costs.
These two types of data loss insurance are both incredibly important to many businesses. If your business deals with data and technology, insurance protection for data loss is perfect for you.