Cyber Liability Insurance

Cyber Liability Insurance

To understand the need for cyber liability insurance, you may need to look at your business and examine how much of your business is computer-based.  Many people underestimate their reliance on technology and think that their cyber presence is smaller than it is.  In reality, most businesses manage at least part of their business on-line, so that a single cyber-attack can compromise the business.  Moreover, the impact of cyber crimes is twofold.  First, a cyber crime can attack a business’s assets, but, second, it can also attack customer information. 

A business may be responsible to customers for lost information, even if the business uses a third-party for information storage because contract terms almost always shift liability to the business owner and away from the third-party storage provider.  Cyber Liability Insurance can cover business interruptions that result from cyber-attacks, the cost of notifying customers, some penalties that you may have to pay for the loss of information, if applicable, and sometimes even public relations costs to help mitigate damages to reputation that can result from an attack.  Furthermore, it can be critical for small companies because, unlike large companies, they may not have the resources to weather the impact of a cyber-attack or to help them with risk management.

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1386 Route 9 | Toms River, NJ 08755 | (732) 286-9600

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