Home Depot, eBay, and Kmart are all recognized as three popular retail stores where people shop, but they also have another thing in common; they’ve all suffered data breaches. Data breaches are threats to your financial well-being, which are frightening and expensive. Is it time for your small business in Hopkinton to consider cyber insurance?
How Cyber Insurance in Hopkinton, Massachusetts Can Help with Data Breaches
Some people believe that cyber-attacks are usually aimed at larger businesses because they store huge quantities of personal data. However, large businesses are now recognizing the dangers of cyber-attacks and are taking steps to prevent breaches.
In addition, small companies may not feel they are targets and do not need to be concerned, some even wrongly believe that cyber breaches are covered in standard commercial insurance policies. In reality, breaches at small companies are increasing because many small business owners fail to take precautions. To avoid becoming a victim, you should consider prevention efforts and the benefits of cyber insurance in Hopkinton.
Benefits of Cyber Insurance in Hopkinton
Cyber coverage can be purchased as a policy, which may help to mitigate losses from cyber incidents like data breaches, network damages, or business interruption. Coverage in specific policies may vary depending upon the insurer and what coverages are included or chosen.
First Party Response Coverage
Customer Notifications
This coverage may help to reduce costs incurred after a breach by paying for letter preparation, mailing costs, or the cost of a call center to answer questions from concerned clients.
Forensic Services
Coverage can help provide financial assistance with the costs of forensic services, which are used to investigate breaches, determine if one occurred, and help with regulatory compliances if applicable.
Credit Monitoring
Credit monitoring coverage can help with the costs of monitoring credit for customers affected by a breach.
Public Relations and Crisis Management
Crisis management coverage can help to assist in the costs of educating clients about breached data, expenses from rebuilding the reputation of a company, and public relations costs.
Business Interruption
Depending upon the severity of the cyber-attack, some businesses may experience an interruption in their business operations. This coverage may help with costs incurred for leasing equipment or the need for adding additional staff members.
Cyber Extortion
Cyber extortion coverage may help with losses or expenses that are incurred resulting from extortion threats made to a company. Threats could include perils like the introduction of malicious code, damaging, corrupting, or destroying a computer system.
Third Party Liability and Defense Coverage
Legal Issues
Defense coverage may help to offset expenses for legal settlements, civil awards, or judgements after a company has been breached.
Privacy Liability
This can help provide liability coverage for an insured who fails to protect confidential or electronic information and the privacy of employees.
Media Liability
Media liability coverage can help with defamation, personal injury cases, or copyright infringement.
How Cyber-Attacks Can Affect Businesses
Cyber-attacks may be carried out by individuals or organizations to steal data, which could affect businesses in a number of negative ways like these:
- Companies often lose customers after the bad publicity of a cyber-attack.
- Loss of customers could result in a loss of revenue.
- Too much revenue loss may force a company to go out of business.
Computer hackers have the knowledge, time and the motivation to hack into companies of all sizes. Often times, some companies that will not take the initiative to protect themselves become very vulnerable. Now may be a good time to consider cyber insurance in Hopkinton.
