Cybercrime is on the rise and becoming a bigger risk for all sizes of Texas companies each year. It has become such a factor in recent years that cyber insurance is now a policy that business owners should have in their insurance portfolios.
Internet liability insurance is one of the most important policies you can purchase to protect your Texas business in a technological landscape where it is becoming increasingly dangerous to operate.
Why Is Internet Liability Insurance So Important?
Any Texas business that uses technology to store or transfer information such as customer and financial data is at risk of a cyber attack. Some of the biggest companies with extensive security systems are attacked each year, resulting in massive financial and legal problems.
Cyber insurance can protect your company in more ways than you may realize in the event you are a victim of cybercrime.
What you must keep in mind when considering whether you really need this type of insurance is the actual risks and damages that may be incurred. Data theft can bring your company to a standstill in two significant ways:
- Destroy your essential business data and delay normal operations.
- Make you liable for the theft of other people’s private and personal information.
Without the right Internet liability insurance, many smaller businesses find they must close their doors after a cyber attack.
What Does Cyber Insurance Cover?
A good cyber insurance policy for most Texas companies will cover various liabilities and many other costs incurred after a breach:
- Breach Response and Mitigation Costs - When a breach occurs, Internet liability insurance policies typically cover the cost for forensics to determine the cause, the notification process to inform affected clients or customers of the breach, provide public relations services to protect your company’s reputation, and the credit monitoring services required by law after a data breach for all affected persons.
- First Party Coverage - This is coverage to help you deal with the damages to your business including data restoration services, business interruption expenses, and extortion expenses. Coverage of these fees can help get your business back on its feet and functioning again.
- Third Party Coverage - This is insurance coverage against third party claims, including regulatory government claims, that may arise against your company due to damage caused by data theft or transmission of a computer virus and for failure to notify of a breach. Third party coverage also protects against liabilities such as plagiarism, copyright infringement, slander, libel, and more.
Protecting your Texas company against cybercrime can be a real challenge. Even if you use the best technology, data breaches can and do happen. A cyber insurance policy is your best protection against what could happen in the event your business becomes a target.
Internet liability insurance policies sold by business insurance agencies are very affordable for the coverage they offer. Consider purchasing such a policy today so you can know that your company and customers are well protected!