Does Your Business Need Cyber Liability Insurance?

Does Your Business Need Cyber Liability Insurance?

Crash theft safetyIn this day and age, information is easier to obtain than ever. While the free flow of information can be good in some ways, it can also be harmful to your New Jersey business, since information is often as valuable as products and services themselves.

There are a number of ways that your information can be exposed to individuals outside of your company, from print/copy/fax machines to computers. Everything that you print, copy or fax is saved to a hard drive. This means information such as employee records, medical data, financial documents and more can be retrieved from your machine if you are not careful.

And that doesn't even begin to touch on the information that can be mined from your company’s computers. Private financial or business information can be exposed online by accident, on purpose by one of your employees, or accessed through hacking by an outside party. Take a look at these reasons for buying cyber liability insurance:

  • Financial – If you experience a data breach, the forensics to figure out what happened can be quite expensive. You'll need to investigate and take steps (also costly) towards making sure a similar breach doesn't happen again.
  • Litigation – When sensitive data is compromised, such as personal employment data that could include names and home billing addresses, it opens your company up to potential lawsuits. Litigation is invariably expensive, even if  your lawyer is successful in fighting the suit.
  • Damages – If your defense fails, you'll be on the line financially. If someone, such as an employee or a client, has been hurt due to the exposure of sensitive, confidential information, your company may be forced to pay damages.

Data is incredibly sensitive, and odds are your company has plenty of it. There are many ways to try to prevent a breach in your company’s data, but even good computer security is not foolproof. To protect your business, strongly consider purchasing cyber liability insurance. For more information about cyber liability insurance for New Jersey business owners, be sure to contact us at CCW Insurance.