You should consider cyber liability insurance if your company collects identifiable personal information in digital format.
Insurance can be valuable protection in case a data breach or a cyber-attack endangers the confidentiality of that information.
Depending on the policy, the insurance can help cover numerous legal and administrative costs.
Cyber insurance is relatively new, and rates are rising rapidly as hackers strike again and again. Policies also vary from company to company.
For these reasons, your company needs to do some digging.
- Talk to insurers about your business so they understand your potential exposure and needs.
- Be prepared to upgrade your system. Insurance companies may require security patches and other steps to safeguard your data.
- Ask if the policy covers legal costs. Hacks often lead to complaints and reviews that are best handled by a qualified, experienced attorney.