What is Cyber Liability?
A type of insurance designed to cover consumers of technology services or products. More specifically, the policies are intended to cover a variety of both liability and property losses that may result when a business engages in various electronic activities, such as selling on the internet or collecting data within its internal electronic network.
Most notably, cyber and privacy policies cover a business’ liability for a data breach in which the firm’s customers’ personal information, such as Social Security or credit card numbers, is exposed or stolen by a hacker or other criminal who has gained access to the firm’s electronic network.
What is the importance?
Companies store a huge amount of data online, from client’s payment information to stock orders to internal memos and more. This sensitive information gets out a lot easier than many businesses care to believe as seen by the large companies that have had an extensive data breaches in recent years. This is where cyber insurance comes in; businesses, both large and small are at a risk for a cyber-attack and need protection against this incredible loss.
Small vs Large Businesses
While most people think that cyber-attacks only happen to large businesses, small companies are also at risk. Smaller companies that do experience cyber-attacks are less likely to be reported to media sources, which makes it seem like small businesses are more protected against cyber-attacks. This is not the case, as many small businesses often don’t have the technology or the know-how to protect their online data, and a data breach can have disastrous consequences.