Technology has solved a lot of problems for business owners. It has helped employees do their jobs better and faster, cut costs and connected businesses with customers all around the world.
But there’s a dark side to modern technology — one that comes with significant risks for businesses of all sizes. It’s the threat of data theft and cyber crime. The internet is the new frontier for criminals and opportunists who wouldn’t think twice about swiping and selling sensitive data from your business, and these bad actors are taking advantage of that fact.
This is a problem that is difficult to keep up with. Cyber criminals continuously develop new ways to do what they do every day — but the insurance industry has created cyber and data liability insurance coverage to help business owners regain some peace of mind.
In this post, we take a look at cyber and data theft, the business insurance policies that can cover it and how to tell whether you’re fully covered. Read on to learn more and contact the insurance professionals at Wallace & Turner to help find a cyber and data liability policy that’s right for you.
Addressing the Threat of Cyber Crime
Most types of Ohio businesses conduct their business in a way that, in some form, leads to the storage of customer or employee information. This information is data, and it is valuable to all kinds of cyber criminals. The uses for stolen personal information range from relatively innocuous targeted marketing to extremely insidious identity theft.
Cyber criminals and scammers are highly aware of the value of the data that businesses store, as well as the vulnerabilities they can exploit to get their hands on that data. That awareness becomes crystal clear if you look at the sheer numbers behind data breaches.
In 2020, there were 1,001 data breaches in the United States. Those breaches resulted in the exposure of nearly 156 million sensitive records. To avoid financial and legal liability, businesses who experience data breaches must notify the affected customers and employees and rectify the issue to the best of their ability. But even then, they may face legal liability from those affected.
That’s just for data breaches. But there are dozens of other types of cybersecurity issues that could threaten your business. Hackers could gain control of your computer system and hold your files for ransom or cause a network outage with steep costs in lost business.
Who Needs Data and Cyber Liability Insurance in Ohio?
In short, nearly every company. If your business uses computers or similar technology and/or stores customer or employee data digitally, you need to consider cyber and data liability insurance. That includes Ohio businesses of all sizes, from massive corporations to one-person operations.
No business is too big or too small to suffer from cyber crime. And if it happens to your company, you will want to be fully covered by an Ohio cyber and data liability insurance policy.
What Does Cyber & Data Liability Insurance Cover?
Every insurance policy has its unique coverages and exclusions, but in general, you will want to look for the concerns described below in both your cyber liability policy and data breach policy.
Ohio Cyber Liability Insurance
Cyber attacks can take many forms, but the end results of those attacks are often similar: lost files, lost income, damage to your business’ reputation, lost money paid in ransom schemes, lawsuits from affected customers and employees, and fines from government regulators. Purchasing a Ohio cyber liability insurance policy will cover these losses.
Ohio Data Breach Insurance
Ohio data breach insurance covers the outcomes of a loss of data due to cyber theft. The theft could be as simple as someone walking out with a company laptop or as sophisticated as a remote hacking attempt. In any case, data breach insurance can cover the following:
The cost of notifying affected employees or customers of the data breach
The cost of offering credit monitoring services to those the breach affected
The cost of hiring a public relations firm to mitigate the damage to your business’ reputation
Lost business income in the case that the loss of data keeps you from doing business
You may even be able to add on prior acts coverage, which will cover you for claims regarding data breaches that occurred before you enacted the policy.
Comprehensive Data and Cyber Liability Policies Made with Your Business in Mind
Without a strong cyber and data liability insurance policy, your business is exposed to a world full of threats. Make no mistake — these threats can destroy your business. But you don’t have to live in fear of cyber crime. An Ohio independent insurance agent can connect you with a policy that will safeguard your company from a range of cyber issues.
At Wallace & Turner, our independent insurance agents have been connecting the residents of Urbana and Springfield, Ohio, with custom policies for more than 150 years. Our agency has seen the world change in that time, and we have changed with it.
Today, we know how important it is to protect yourself from the new threats that come with an internet-connected world, and that’s why we offer a comprehensive suite of cyber and data liability policies.
Give us a call at 937-324-8492 or contact us online to discuss coverage for your business.