Any sizeable company in the 21st century stores information on computer networks or in cyber clouds. That type of data storage brings the risk for security breaches. While tech professionals do their best to protect a network, hackers continue to find ways to break into such systems. When that happens, the damage can be far reaching. Privacy and network security insurance policies deal with such cyber liability. That’s helpful when considering coverage for protection of accidental exposures of personal information from clients as well as employees. This could include any of the following:
- Medical records
- Financial records
- Credit card numbers
- Social security numbers
Offsetting the Damage of a Cyber Breach
A package of cyber liabilityinsurance can help mitigate the costs of a breach of privacy. Even without any lawsuits from clients whose records were exposed, there are often regulations requiring certain reparations to set things right with the clients or people whose records were exposed. That might include any of the following steps:
- Notification letters sent to those affected
- Creation of a response call center
- Free credit monitoring for people affected
The company may also want to take the time for some public relations work when one of these unfortunate incidents occurs, and good insurance can help pay for that.
Insurance that Gives Peace of Mind
In addition to helping clients after a cyber breach, a company may actually have to pay fines to regulatory agencies. That can be one more financial burden, and it makes another argument for a good insurance package that includes cyber liabilitycoverage on top of the regular liability policies. It should help company management sleep better at night.