Privacy and data security is a growing concern among Americans as not only are cyber criminals a domestic threat, they are also an international threat as countries like China and Iraq have been hacking into our mainframes with the intentions of cyber terrorism.
However, it's necessary to recognize that this can happen on any scale.
Small businesses are especially not immune to these types of attacks as hackers know that perhaps a smaller entity does not have the finances or resources to thoroughly protect themselves.
So how do most data privacy and cyber security insurance policies protect you? Here are ten ways...
1.
You should look to be covered if sensitive information is released under your command and claims arise from it, including any HIPPA violations.
2.
You should look to be covered for failing to properly maintain your data security system if a breach occurs and sensitive information is stolen, lost or damaged.
3.
A good data security insurance policy will cover regulatory fines and penalties and compensatory awards resulting from a security or privacy breach.
4.
Should a breach occur, some policies would help you with all legal and electronic forensics necessary to retrieve the lost or stolen data.
5.
Even if a breach does occur, you could receive a public relations consultant in response to adverse media reports made against you, the insured.
This will help eliminate any derogatory affects against your business.
6.
You can be covered for the expenses to repair, replace, recreate or restore digital assets as a result of accidental damage, alteration, corruption, distortion, misuse, destruction or theft.
7.
A cyber threat that interrupts (cyber terrorism) or disrupts your assets can be covered as your expenses and income loss may be reimbursed to you.
8.
Most importantly, good cyber extortion insurance will help prevent a breach of security from ever occurring.
This is your first line of defense.
9.
Should your computer and data security system fail-from non-physical means- you should look to be covered in the retrieval of any income loss resulting from the failure.
10.
Finally, you can be covered for all forms of a data breach, which includes "skimming", in which credit card information from clients may be compromised.
Don't wait for a second longer.
Obtain a great privacy and data (cyber risk) insurance policy.
Remember: the devastating effects of a cyber security breach can topple your small business and send it crumbling under the weight of fees, loss of data and a mountain of claims.