Data Breach Insurance Information
As technology becomes more ingrained in your organization’s daily operations, these advancements can create or exacerbate cyber risks. In recent years, cyber criminals have increased their attack frequency while evolving their hacking methods and widening their target selection. As such, organizations of all sizes and sectors must be wary of the threat of a data breach.
What Is Data Breach Insurance?
In the aftermath of a data breach, your organization may face immediate and long-term financial consequences. As a data breach insurance policyholder, you may be able to access critical financial assistance to help you manage these difficult situations. It should be noted that while data breach insurance is sometimes referred to interchangeably with cyber liability insurance, these coverages may have different capabilities. Your organization must work with a qualified insurance professional to ensure you understand your coverage.
How Does Data Breach Insurance Work?
As its name suggests, data breach insurance provides your organization with a financial safety net following a data breach. In many cases, this may mean that you can access funds to help pay for the following expenses or damages:
-
Response costs—This coverage can help your organization pay to investigate a data breach, notify affected parties and pay noncompliance fines.
-
Additional help—In the wake of a data breach, your insurance may help pay for assistance, such as fraud and credit monitoring services for affected parties and a crisis management team or public relations firm for your business.
-
Restoring systems—If an incident involves damaged or compromised equipment, devices or systems, data breach insurance may help you recoup losses.
-
Cyberextortion payments—This coverage can compensate you if a cyber criminal accesses sensitive data and extorts you for payment, such as via a ransomware attack.
Why Is Data Breach Insurance Important?
A data breach can have devastating effects on your organization. The financial ramifications of even a single mistake made by one employee could jeopardize your business’s entire future. Fortunately, a suitable data breach insurance policy can help you absorb these losses and continue to pursue your mission.
With over 30 years of experience serving businesses in the Houston area, U.S. E & O Brokers is well-equipped to help your organization assess and address its data breach insurance needs. Contact us today to get started.