Sometimes you never know a certain law exists until you are caught on the wrong side of it. This is very common in the information technology world because for one it is a fairly new field that has gained explosive fame in the recent past.
In the world of information technology there are always new issues that we have to deal with. One of them is cyber crime, a concept that unfortunately is not very familiar to many internet and technology users.
Cyber liability insurance is a policy that covers information technology service and products’ consumers for losses that might result in the process of a business conducting its activities such as online sales or data collection within the its internal system network.
What cyber liability insurance covers is the liability of a business for data breaches for instance a system can be hacked and in the process personal information of the clients are lost, such personal information can include credit card numbers, and even social security numbers. Worst is the theft if identity.
For a firm to guard itself against such criminals and hackers who can in one way or another gain access to business’ electronic network then the policy cover of cyber liability insurance is a sure way of protecting yourself and your business.
The policy cover all the costs you can incur whenever such an incident happened such as notification costs, fines and penalties, and when the state regulators make their claim the insurance will also be able to pay them.
Whenever your firms network system is hacked you suffer a lot of interruptions including temporary interruption of your business running efficiently, image damage of your corporation not forgetting that your customer have lost not only their identity but their social security numbers. The beauty with this insurance is that it covers all this.
It will assist to pay for your services because when your system is hacked you cannot have normal cash flow. The policy also covers the payment of a public relations firm that you will hire to repair your companies ruined image.
Some small corporation who do not host their data themselves often feel like they are exempted from this policy, but that is not the case, even if your data is stored in the cloud, you are still required to have this cyber liability insurance because if the system is hacked from wherever you will still be held responsible for the damages cause and suffered by your clients. And remember your business too will suffer in the process of all that.
Cyber liability insurance policy is very affordable and small businesses who cannot afford a whole entire department dedicated to analyzing the network of the organization to make sure it is safe and stays so are encouraged to arm themselves with this policy.
The general liability insurance cover does not include cyber, so it important to have this cover for your business’ network system. And remember when buying this policy include all the technology gadgets in your firm even the mobile phones.