How to Protect Your Business From Data Breaches With Cyber Insurance

Data breaches and cyber incidents have become a constant threat for many businesses. In the modern era, an increasing number of organizations now rely on digital technology, including many in sectors that may have previously considered cybersecurity a lower priority. However, even routine tasks such as sending and receiving emails can endanger your company. Fortunately, the right insurance policy can establish a financial shield.

What Is Cyber Insurance?

Also known as cyber liability insurance, these policies are now essential to risk management and loss control in many sectors. Policies function similarly to many other types of insurance by establishing a form of financial protection for covered incidents. Your business’s premiums maintain its policy and retain the ability to submit a claim for financial assistance following various types of data breaches, including those arising from phishing attacks and malware infections.

How Can My Policy Help?

Cyber insurance can provide versatile and essential coverage for many potential losses and expenses from data breaches. Specifically, payouts may be issued to assist with the following:

• Incident response costs—This could include expenses for notifying affected parties and hiring digital forensics investigators.

• Business interruption losses—Your policy may offer financial aid if a data breach causes delays or forces you to temporarily cease normal operations.

• Reputational rehabilitation—In many cases, you may need to repair trust with the general public following a data breach. Fortunately, your insurance may help pay to hire a public relations firm.

• Noncompliance fines—If a regulatory agency penalizes your business following a breach, such as due to insufficient cybersecurity measures, your coverage may help pay fines.

• Legal expenses—Cyber insurance may provide aid if you’re sued following a data breach, such as for attorney fees, settlements and judgments.

How to Get the Right Coverage

Contact Vela Auto Insurance in Houston, Texas, today to learn more about cyber coverage and compare personalized quotes.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.