What is Cyber Liability Insurance and What Factors Should be Considered When Buying One?

This article delineates what is cyber liability insurance and what does it entail. Cyber insurance is meant to shield your business against the cybercrime risks and in simpleton terms, the risks associated with the information technology infrastructure and activities. It can also assist you to limit the damage inflicted by an attempt to access your business data by unauthorized means. Cyber liability policies give support when it comes to data recovery and business interruption covers which help in restoring your stability post cyberattack.

Do you need it?

If your business manages customer data then, you should, by all means protecting your customer data. This is because it is prone to be compromised when the security breach takes place. Many small business owners feel that they don’t need this insurance, but researchers claim that the cyber attackers usually target small business just because they don’t understand the gravitas of this risk. Cyber liability insurance is important for every business size if they have an online presence.

What does this insurance cover?

Cyber liability can cover a range of security breaches like:

  1. Data breaches following employee theft
  2. Data breaches following loss of a memory stick
  3. Cyber business interruption
  4. Denial of service attacks
  5. Data breaches following hacking

Factors to consider when applying for this insurance

  1. Staff should be trained on a regular basis

With the technological advancements, hacking techniques are developing a similar rate too. It is essential to keep the personnel up to date with all the latest threats to look out for.

  1. Data encryption

This is a tad bit different than having a password. It tends to scramble the data on a hard disk so that it becomes accessible with a decryption key. This is still considered a safer means than setting a password.

  1. Storing portable devices at work

Always store your portable devices at work as this will limit the chances of getting them stolen or lost in the public, hence reducing the chances of hacking caused by loss of device or memory stick

  1. Keeping up with legal changes

It is essential for you to stay apprised with any kind of changes introduced in the digital world and in the law to make sure that your insurance is never rendered invalid without your knowledge.

To know more about cyber liability insurance, get in touch with us.

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