Advancements in the way that businesses manage information have presented considerable new liability risks. Storing information remotely and interacting with customers on new interfaces makes important data vulnerable to cyber breaches, so it’s critical that businesses are able to safeguard themselves against this continually growing threat.
Consumer Protection Laws
In many instances, it isn’t the business’ data that hackers are after but rather their customers’. Hackers will target businesses to acquire their customers’ credit card information or personal information that may be used for identity theft. Many individual states have enacted laws about what businesses need to do to protect their customers’ personal information as well as laws about the general privacy of customers’ data. You need to ensure that your business is fully compliant with the laws in every state in which your business operates.
Data breaches can result in extremely costly expenses to a business. An insurance policy that’s specifically designed to address cyber liability can help a business manage numerous types of expenses. For example, coverage can go towards the costs associated with sending notifications to customers that a breach has taken place. A policy can also pay for a business’ legal costs for a claim related to a breach as well as the cost of a judgment or settlement agreement.