Simply Explaining Insurance #67- Cyberliability

Cyber crime has become yet another thing for business owners to worry about. Good news is there is a product called cyberliability to ease some of that worry. Business owners can add this to some existing policies, or purchase a stand alone policy that will protect them from such acts.

If your company stores sensitive information like social security numbers or credit card numbers and you get hacked, you may be responsible for a number of things. 1. You may need to reach out and alert all of your clients that their information might be compromised. 2. You may need to offer all of them one year worth of credit monitoring.

These two things come with an expense that could really sting a business. The more clients you have the more expensive this could be.

As a business owner, I would do an audit on your cyber security. Make sure your passwords are strong on your accounts, encrypt your hard drives using something like bitlocker, and lock up your sensitive documents. Cyber liability insurance is there for you in the event they get through your defenses. It will cover the cost of reaching out to your clients and cover the expense of all of those new credit monitoring accounts for your clients.

Reach out to your agent to see if cyberliability is something that is necessary for you and how it can be added to your policy.