There are several business insurance policies that the average company needs to look into prior to beginning their operations. Property insurance, general liability, and workers compensation immediately come to mind. Also among your Sparta New Jersey Business Insurance needs you might need to consider purchasing cyber liability insurance.
Cyber liability, or data breach liability have become common for every type of company, and a cyber breach can seriously affect local businesses. And the problem doesn’t always stem from outside hackers. Employees, either by accident or intentionally, account for a good percentage of the data breaches that occur in many small to mid sized companies.
What are some of the causes of cyber liability and data breach losses?
As a business owner, you should be concerned about the possibility that a cyber attack will steal your business assets. An equally important concern is the major exposure to your clients or others where you have collected private information, which if stolen could have severe repercussions. What are some of the causes of a cyber breach?
- Computer hacking
- Employees dispensing of sensitive materials
- Employees using or stealing sensitive information
- Lost or stolen computers or other devices, and
- Failure to adequately wipe sensitive info from old computers
A data breach can be quite costly
Claims against your company for failure to protect information, expense of legally required notifications and credit monitoring to those whose information is exposed is rather costly for those without insurance. Add to this the forensic expense to find out and resolve what happened, public relations expenses to maintain business reputation, regulatory and payment card industry fines and hacker extortion demands.
Some small business owners have even been forced to go out of business due to identity thieves using information illegally obtained in order to impersonate the business entity and use personal names of company execs, leading to loan defaults, inability to access credit and loss of business reputation.
These are the types of exposures and risks that many business owners now face due to our dependence on computers and technology to run businesses in these modern times. Sparta New Jersey Business Insurance, and specifically a cyber liability policy, is necessary to combat the cyber thieves, including your own personnel, in the event that sensitive information is ever misused.