Protect Your Business with Cyber Liability Insurance

insurance, big data

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.

3 Ways Big Data Can Improve the Insurance Process

Insurance big data

Big data is a term used to describe large sets of information that can be analyzed to gain insight and understand implications. The insurance industry has been greatly benefited by big data. Insurance big data improves the process in the following ways.

  1. Exposes Fraud: When a fraudulent case came to an insurance agent in the past, it was easy to miss because these shams could manipulate the rules. Big data, on the other hand, uses text mining, exception reporting, rules, modeling and database searches to more quickly and accurately identify fraud.
  2. Makes Settling Claims Easier: Insurance companies have to look at a lot of data before settling claims to ensure a fair price is given. When insurance big data enters the picture, it is easier to settle claims with speed because analytics are able to calculate loss accurately.
  3. Reduces Lawsuits: Oftentimes disputed claims end in litigation. Insurance companies can use big data to analyze the different claims to find out which ones are more likely to end in litigation. The insurers are then able to assign the higher risk claims to senior adjusters who may be more likely to settle the claims without the need for lawsuits.

Insurance big data can be very beneficial for the insurance company and the insured when used properly.