Businesses old and new will generally purchase general liability and property insurance, along with workers compensation as the building blocks of their Austin Commercial Business Insurance portfolio. But now, most companies realize that they are also vulnerable to data breaches, lapses in network security, and identify theft concerns. So many smart owners are giving cyber insurance the attention it deserves.
This type of exposure has really gotten out of hand. Banks are constantly informing customers, or vice versa, that there has been suspicious activity linked to their debit cards, credit cards, or bank accounts. This is a concern that needs to be addressed by nearly every sector of the business community. After all, these exposures are not exclusive to giant corporations or government agencies alone. Any business that uses computers and stores private information of any kind can become easy prey to those attempting to steal personal information.
The insurance industry has addressed this emerging risk with various types of cyber liability insurance coverages. Whether the attack comes from external sources, or is perpetrated by an employee or someone with access from within, this is coverage that most businesses simply cannot properly function without.
Small business owners face same concerns
Data breaches can occur that often affect millions of individuals each year. Not surprisingly, it’s the smaller businesses that are most at risk. Attacks by hackers can create serious financial losses for small business owners, who unfortunately don’t have the resources that large corporations have at their disposal. Non-malicious threats are equally dangerous, and a simple thing like a lost, stolen or misplaced laptop or cell phone can allow a cyber thief access to confidential information.
Companies experiencing a cyber breach are required by law to notify customers in their database whenever a breach takes place, which adds additional concerns. Once a breach is identified and reported, there’s often real damage to a company’s reputation along with the loss of customer retention. When an owner factors in expenses needed to repair the damage to their business, Austin Commercial Business Insurance, and specifically cyber insurance, is a worthwhile investment.