Owning your own business can be a big liability. If someone gets hurt on your property, you are liable. When your data gets breached, you are reliable. Thats a big financial burden. Thats also why there is liability insurance. Cyber or big data insurance is one way to make sure that both you and your customers are protected. There are two main types of cyber liability insurance:
- First-Party Coverage – This type of cyber liability insurance will financially compensate you which will allow you to help your customers and your business. This type of insurance also helps pay for legal or forensics services to help ascertain whether a breach has happened. These legal or forensics services will also help you comply with any regulations if a breach is verified. First-party coverage helps you notify and educate affected customers and employees. It may help you monitor your customers credit. If a data breach interrupts the flow of your business, first-party coverage also helps with those types of expenses. Finally, this type of coverage also helps reimburse you, your customers and your employees for perils related to the cyber attack.
- Third-Party Coverage – Third-party coverage protects you for lawsuits brought by customers or partners after data has been breached. The policy may cover any settlements or judgments that you have to pay after a data breach. It will also protect you from infringing on copyrights, trade names and things of that nature. Finally, this coverage potentially offers network security to help further protect you from being breached.
In todays technologically advanced world, cyber liability or big data insurance is a must. You have to protect your business, employees and customers otherwise you may be financially liable if anything goes wrong. Talk to an insurance agent today to find out how you can best protect your business.