Cyber Liability Insurance NJ for Businesses
Cybercrime is an increasingly potent threat to modern business owners.
With data and security breaches becoming increasingly common, no business is immune to virtual attacks. It’s more important than ever to invest in cyber liability insurance coverage.
What is Cyber Liability Coverage for?
You often read about high-profile security scares in the newspapers, but it’s not just large, multinational corporations that are targeted by hackers and are susceptible to viruses.
Companies of all sizes are vulnerable, and research suggests that over 50% of small businesses in the US have experienced recurrent security breaches. Cyber liability insurance is designed to cover your liability if your business is the victim of a cyber attack, which results in personal information and data being leaked.
Cyber liability insurance covers your liability in the event of a data breach or other cyber attack.
Cyber liability coverage is not usually covered under general liability insurance, so it should be taken out as a separate policy.
What Does It Protect Against & What Coverages Are Available?
There are two main types of cyber liability coverage:
these include first-party and third-party.
First-party coverage is aimed at protecting your business when your network is hacked, or you have sensitive data stolen. Third-party insurance protects you if a customer or client decides to take legal action against you when their data has been shared or leaked.
First-party coverage can include:
- First-party coverage can include:
- Legal and police services employed to determine how a breach occurred
- Notifying affected customers and employees
- Credit and fraud monitoring schemes
- PR to nullify the threat of a damaged reputation
- Advertising to restore faith in the business
- Business interruption costs
- Cyber extortion
Third-party coverage may include:
- Settlements you are required to pay following a data breach
- Coverage for employee privacy
- Government fines and penalties
- Cost of reissuing cards (for banks and financial organizations)
Other types of cyber liability coverage:
- Hacker damage: this policy protects against attacks by hackers, covering the cost of system repairs, PR and fees for security and forensic consultants.
- Multimedia liability: this type of coverage protects against data or information shared through emails, social media or other online platforms.
- Business interruption and income: if your business is hampered by a cyber attack, business interruption insurance can help you to stay above water while you deal with the aftermath of the incident. Business income insurance can protect against lost profits and provide you with financial assistance to keep operating.
The Impact of Data Breaches
Modern-day businesses are vulnerable to cyber attacks, and security breaches can have far-ranging implications for company owners, their employees, and their customers. If your business is targeted, this could cost you money and damage your reputation.
Your customers might lose trust in you, and it can be difficult for you to keep hold of existing clients and attract new customers if your company’s name is linked to breaches. Investing in cyber liability insurance coverage can help shield you from financial losses as a result of cyber attacks and help you pay for services you still need.
If your business is targeted, a cyber attack or data breech could cost you money, cripple your productivity, and damage your reputation.
Any business can benefit from cyber liability insurance, and policies can be selected based on the specific industry in which you operate. You may find that there are cyber liability policies that are better suited to tech companies, public entities or small businesses.
If you don’t already have cyber liability coverage, it’s time to invest in protection against one of the most powerful and dangerous threats to modern businesses.