In 2013, big retail companies were targeted in a series of cybercrimes, where costumer information was stolen and used for fraud. Millions of dollars were lost by these establishments, some of their executives and employees were fired, and customers became apprehensive about using their cards at those stores for a time, which cost even more money.
If there’s anything businesses should learn from the recent data breaches that have hit the headlines, it’s the importance of protecting themselves. Using systems that accept unencrypted credit card data or data storage with weak security, for instance, can put your company at risk, so shifting to more advanced and highly secured systems would be ideal. The question is: if upgrading all your equipment or software would take time or if it wouldn’t be possible currently, can you still protect your company?
Dealing with similar scenarios, you can get ahead of data breaches by investing in cyber risk and network security insurance. There are many policies available for the simplest to the most complex needs. An experienced broker can discuss your options.
Just like other types of commercial coverage, like workers comp or health insurance, cyber-liability insurance helps you mitigate the costs in anticipation of unforeseen events. In this case, you realize the risk of facing lawsuits and losing compensation when a cyber-attack occurs, so you make sure that a third party can cover these damages or lawsuits. That way, you prevent getting burdened by bankruptcy as much as possible.