Technology & Cyber Liability Insurance—Protecting IT
It seems like every day there’s a story in the news about a devastating data breach. Hackers, lost data, unsecured emails, software malfunctions, ransomware attacks, and more can leave your business and your customers vulnerable. The liability issues that arise from such a breach have the potential to devastate your business. Maybe even shut it down.
Now there’s a way to recover after a breach—technology and cyber liability insurance.
There are two types of technology and cyber liability policies:
- First-party cyber liability insurance
- Third-party cyber liability insurance
The type that’s right for you depends upon the kind of risks you face and the data that could be compromised.
First-party technology and cyber liability insurance covers businesses that typically store great amounts of customer data on their systems. This is usually sensitive information such as names, addresses, emails, phone numbers, and credit card numbers. If the business’s own networks are compromised and the client data is lost or stolen, first-party coverage will cover the cost of:
- Notifying customers
- Instituting anti-fraud protection for customers
- Investigating the security breach
- Crisis management
- Determining if the breach was internal or external
- Cyber extortion or ransomware demands
For smaller IT firms, developers, project managers, and independent contractors, third-party technology and cyber liability insurance is more applicable. These are the types of businesses that may maintain, host, or manipulate client data, and as such, risk that the client’s systems will be compromised and their data lost or stolen. Third-party coverage protects you if a client sues you in the wake of a breach, covering:
- Attorneys to defend your company
- The cost of a settlement
- Damages awarded by the courts
- Other legal fees and court costs
Reboot Your Business With Cyber Insurance—Call for a Quote Today
There are many factors that determine what kind of cyber liability coverage you’ll need, including:
- Your industry
- The type of services you offer
- The kind of sensitive data you store, collect, or process
- The total personally identifiable information (PII) and protected health information (PHI) you maintain on your system
- Data risks and exposures
- Network security
- Privacy policies and procedures
A data breach doesn’t have to mean your business will be forced offline. You can recover and reboot your business with technology and cyber Liability Insurance. Let the insurance experts at the Thomas Ward Insurance Group find the right coverage for you. Call 312.254.1500 today to get a quote or email us learn more.