As a modern business, you must maintain up-to-date risk management and loss control measures. Given the rising prominence of online tools and programs and an ever-increasing prevalence of cybercrime and data breaches, cyber liability insurance has become a high priority. The team at Town & Country Insurance Agency can help you understand that critical form of coverage and protect your business’s financial interests.
What Is Cyber Liability Insurance? 
Also known as cyber insurance and data breach insurance, these policies are primarily focused on helping your organization bounce back from the fiscal ramifications of cyber incidents. Ransomware attacks, phishing scams and other cyber crimes can inflict devastating damage and, without appropriate cyber liability coverage, you’d be left to handle these unexpected expenses on your own.
What Can My Policy Cover?
Cyber liability insurance policies can often be customized according to your business’s needs, preferences and budget. Still, many include common financial protections capable of blunting the financial impact of cyber incidents. Specifically, your coverage might assist with the following:
- Incident investigation costs—If you want to hire digital forensics investigators or IT contractors to investigate a breach, your policy may help pay for such services.
- Breach notification expenses—You’ll need to let clients, vendors or other parties know if their data was compromised. Your coverage can help manage these costs.
- Business interruption losses—Cyber incidents may force you to temporarily shut down operations, but your insurance can help recoup these losses.
- Noncompliance fines—Regulatory agencies may penalize you if they find that you weren’t taking precautions to protect clients’ data.
- Legal costs—Your insurance may help pay for attorney fees, settlements and judgments should affected parties sue you after a data breach.
Why Is Coverage Important?
Even small- and medium-sized companies are at significant risk of being targeted by cybercriminals. Given the number of tasks and information conducted and stored online, many businesses across a wide variety of sectors are now vulnerable to these incidents. A suitable cyber liability insurance policy may make all the difference between recovering from a data breach or facing potential insolvency.