Protecting Your Business With Cyber Insurance

With technology serving as the focal point of any business, the issue of cyber security and ensuring the safety of your company and client’s data is more important than ever. The threat of breaches to a business’s computer systems and data is a constant presence; fortunately there are options to help protect your company from electronic security threats, including investing in cyber insurance. If you are located in San Diego, California, and have questions about insurance options that can protect your business, Windfall Insurance Services Inc. is here to help. Read on to learn more about how to protect your company with cybersecurity insurance.

How Does Cyber Insurance Work?

One great option to help combat data breaches and ensure electronic security for your business is purchasing a cyber insurance policy. Because businesses store and utilize sensitive information like addresses, names, social security numbers, credit information, medical records, etc., it can lead to vulnerability and extreme damage for the business and its clients if stolen and misused. Cyber security insurance typically includes both first and third party protection for a business and its customers and is designed to protect your business against digital threats like a data breach or cyber attack on technology systems. If your business encounters a security breach, a cyber insurance policy will cover the cost in the event that a system and data have been lost, corrupted, stolen, etc. It is essential for any business that processes and stores confidential personal information needs cyber insurance, in addition to any third party entities that handle that information, such as a business’s accountant or IT division, etc. The cost of cyber security insurance will depend on several factors, such as the type of industry of the business, the type of data that is held, the network security level, and the average yearly revenue of a business.

What Is Covered By Cyber Insurance?

Cyber insurance coverage can be separated into two parts, first-party coverage and third-party coverage. First-party cyber insurance coverage will help a business pay for the costs if its data gets hacked, and will cover costs associated with data recovery, investigative steps, and interruption of business operations. Third-party cyber insurance coverage will help pay if your business encounters a cyber attack that impacts their customers or business partners. In this case, the coverage helps pay for the affiliated costs of legal fees and settlement costs, any media liabilities, and failure of security. Because businesses rely heavily on technology to help with the effective operation of their business, it is crucial to ensure that they are protected from the threat of cyber security risks.

If you are located in San Diego, California, and want to explore you cyber insurance options to fully protect your business, contact Windfall Insurance Services Inc. for a consultation.