Over the past year, the volume of data breaches seems like it’s exploded exponentially. Well known companies like Equifax have even been victims. While not every business is going to have the same level of data as such entities, most businesses are now in possession of valuable customer information. Contrary to popular belief, your standard general liability policy for your business will not cover such losses and damage. This is where cyber insurance becomes invaluable. It usually covers the following:
Last month, I discussed the various types of business insurance you may need as a business owner. However, this was only part of the analysis. It’s also important to know the levels of coverage that are needed for any policy you obtain. How do you figure this out? Here are some factors to consider:
- Notification: One of the biggest, scariest points of cyber losses is having to tell your customers that you screwed up. The beauty of cyber insurance is that it usually includes notifying your customers of the breach.
- Restoration: Beyond mere notification, customers want their identity to be restored. Cyber insurance generally includes services to restore their credit and make it whole.
- Recovery: Cyber insurance also includes the service of recovering any compromised data for your clients. Restoration is not enough as the information can still be misused so recovery is critical.
- Repair: Lastly, cyber insurance has provisions to allow your business to repair the source of the infiltration and bring your systems into compliance
This may all seem very complicated but a quality insurance agent can help you navigate through the many facets of cyber insurance. Whether you are in San Ramon, Danville, Walnut Creek, San Francisco, or anywhere in California, you are welcome to contact us to answer your cyber insurance questions.