With many businesses making the transition from office to work-from-home environments, many challenges have presented themselves in the past months when it comes to successfully adapting to this “new normal.”
In doing this kind of transition, it is important to have safeguards in place to protect your business so that cyber criminals and others with ill intent can't sabotage your success.
Cyber Liability Insurance
If you are a larger business, then cyber liability insurance is a must for you. This insurance coverage can help cover financial loss as a result of a cyberattack or another technology-related risk your business has faced. It typically covers the following:
- Legal services needed to help your business meet all state and federal regulations
- Notification expenses to alert affected customers that their personal information was compromised
- Extortion paid to recover any locked files in a ransomware attack
- Lost income because of a network outage
Additionally, it may recover lawsuits related to employee privacy and security as well as cover regulatory fines from state and federal agencies.
What Is Not Covered?
Cyber liability is good to have, but you also have to remember it is not a one-size-fits-all commercial insurance option for your business. This type of insurance will not cover every claim your business files. You will also need to have other insurance coverage in place to cover other situations, including general liability insurance, commercial property insurance, employment practices liability insurance, and professional liability insurance.
To decide what coverage your business requires, you need to determine your unique business needs. If you have transitioned to working from home during the pandemic, then cyber insurance should be on the top of your list of priorities right now.
Cybersecurity Threats And Pandemic Scams
Pandemic scams and cybersecurity threats run rampant these days as COVID-19 continues to affect several aspects of our personal and professional lives. Security researchers have reported that hackers and scammers are using the pandemic to target individuals and companies through fake emails and phone calls.
Data Breach Insurance
If a hacker gains access to your network and your small business is left vulnerable to a breach, then you can use data breach coverage to notify the affected customers, hire a public relations firm, and offer credit monitoring services to data breach victims. You will usually find that this kind of coverage for your business is customizable. You can choose to include extra protection in your coverage.
Business income and extra expense coverage can help replace any lost income because of a data breach. Prior acts coverage has to do with any claims related to a breach that may have happened before your policy was in effect. Finally, extortion coverage covers the amount paid if someone steals your business data and holds it for ransom.
With so many scams and vulnerabilities that exist today as the result of the pandemic, you should do what you can to ensure that the right coverage options are in place for your business.
For more information on how cyber liability and data breach insurance can help your business recover, contact the experts at Panorama Insurance Agency today.