Small businesses often one of their most important commercial insurance solutions in a business owners policy (BOP). A BOP is an insurance package that offers a variety of commercial insurance benefits in one package and at one price, and it is optimized to meet the needs of small businesses.
Still, while it is great to use a BOP as a starting point for your insurance solutions, you will often need more expansive benefits to fully round out your coverage. One of these benefits is cyber liability coverage, and in many cases, you can add this benefit into your BOP as a policy endorsement. Cyber liability insurance is a great benefit to have in today’s world where data breaches are constant threats, and you should never be without it.
Who Should Maintain Cyber Liability Insurance??
In an economy where remote work is now the norm, any company that utilizes computer networks of any kind faces the risk of a data breach.
Imagine your customers’ personal data leaking to cyber thieves. What if your company’s financial information became accessible? These liabilities are not uncommon, and even if you have the most up-to-date security apparatuses in place, you could still face these types of losses at any time.
Most companies need to consider the value of cyber liability insurance under the circumstances. It covers incidents where sensitive information becomes accessible to third parties and causes your company financial or reputational damage in the process. Having the right insurance is essential to helping you mitigate the financial burden that might come with such challenges.
How Does Cyber Liability Insurance Protect You?
Cyber liability coverage generally is not automatically included in standard BOPs. However, you’ll usually be able to add it into the plan through an endorsement. Doing so will offer you a variety of assistance if challenges occur:
- Cyber liability coverage can help you notify employees or customers if a data exposure occurs. The benefit can pay for victims to maintain credit monitoring and identity security services.
- Plans will often pay for data recovery and security system repairs.
- Plans may help you with reputation management?and damage control. Data breaches can become very costly from a reputational?standpoint, so this benefit can help ease that burden.
- Some benefits will cover the business interruption costs related to the breach, which can help you replace income lost as a result of the cyber theft event.?
A data breach can be very expensive and difficult to overcome, and it is nothing that your business should have to face alone. Cyber liability insurance is often very affordable and is easily integrated into your BOP with the help of your agent. It is coverage that you should not go without.