Cyber attacks are potentially threatening to any Massachusetts business, big or small. Whether your company is in the high-tech sector or a small retail store, if you store customer or employee data such as credit card numbers, social security numbers, or identifying data, you may be a target. Cyber insurance may help cover the costs, shielding your business from the devastating effects of a data breach.
A data breach occurs when sensitive information is stolen or exposed. Once the data is taken, criminals may be able to use it to commit identity theft, make unauthorized credit purchases, expose classified company information, and otherwise wreak havoc on your company and the lives of your customers and employees. Your reputation can be harmed, and you may face hefty fines and lawsuits, costing tens or hundreds of thousands of dollars – or more. For many business owners, these costs may be difficult to recover from. Cyber security insurance may be able to help cover many of these expenses.
Though data theft is considered a crime, it is not covered under most general liability, property insurance, crime, or other insurance policies. In fact, many specifically exclude cyber crimes from the policy, leaving you with no coverage in the event of a breach.
The methods and implications of cyber crimes are changing as rapidly as security protocols and technology. A standard insurance policy may not be able to keep up with the changes. You may need a cyber liability policy that is specifically designed for the varying landscape of cyber crimes.
When you have been attacked, you may have a lot of things to worry about. From fines and penalties to credit monitoring and getting your business running again, there are many facets to recovering from an attack. Your cyber policy may be able to help with many aspects of the recovery process including:
Policies may cover loss of data due to natural events such as storms, accidental exposure, and targeted crimes. Some may require you implement certain security protocols to reduce your risk.
Cyber policies are typically very affordable, especially when you consider the value they provide to your company. For a low monthly premium, you may be able to purchase extensive protection in case of a data breach. The costs of a cyber attack have the potential to quickly mount – from the interruption to your business, to the regulatory fines, credit protections for customers and employees, and potential lawsuits. All told, you may be liable for hundreds of thousands, or even millions of dollars.
Cyber policies might be able to be tailored to your specific risks. If you do any business on the internet, it’s a good idea to talk to an insurance agent experienced with cyber policies and risks to determine what kind of protections you may need.
Any Massachusetts business that stores employee or customer information might be at risk for a cyber attack. By purchasing comprehensive cyber insurance, you may be able to protect your company from the financial ramifications, speeding your recovery in the event of a data breach.