The concept of cyber insurance is relatively new, only being made available about a decade ago to Worcester businesses. In addition to the standard commercial insurance, it is an extremely important policy for businesses that handle sensitive data. Both hackers and disasters can cause a lot of problems when it comes to data and cloud computing. Being protected from these problems if they do occur can save businesses a lot of time and money.
How Does Cyber Insurance Protect Worcester Businesses from Hackers and Disasters?
Personal and class-action claims can be brought against a business if they are found to have been lacking in their safeguards when it comes to customer data. You may think your customer data is secure, especially if you use a third party payment processor, but that may not keep a court from ruling against your business if there is a massive data breach. With cyber insurance, the insurer should be able to help payout any claims or judgments against your business, keeping your assets safe and your business afloat.
Cyber Insurance and Deliberate Hacking Attempts
Credit card data is like digital gold to a hacker. If hackers think they can get their hands on credit card numbers and personal data, they may attack your systems both overtly and covertly in order to gain access to your customers' data. If they get in by using an unknown, backdoor access method that you could not have anticipated, your business may not be liable for damages that occur. On the other hand, if the only thing standing between a hacker and customer data is a password of "1234", there is a very good chance that your business will be found liable for damages.
Natural Disasters in Worcester, Massachusetts
Disasters can potentially destroy data on computers and servers, even if that data is stored in a cloud-based system. Most of the time, a massive data loss will affect your business much more than it would affect your customers. While you may not be facing many civil cases for damage, you might be facing at a big bill to either recover data you may have lost, or to start rebuilding that data. Something like a hurricane destroying a server farm in Florida can have severe consequences for a business in Worcester. It is always a good idea to have both off-site and on-site backups, but you may still be liable for damages caused by either those backups falling into the wrong hands, or if you do not have a disaster readiness plan in place.
While many Worcester business owners may not think that hackers will target them, or that natural disasters will not cause any harm to come to their data, they will wish they had cyber insurance if the worst does happen to them. Hackers will go after any business if they think they can steal valuable customer data, no matter how small, and natural disasters do not have to occur in Massachusetts for business data hosted elsewhere to be wiped out.