Cyber liability insurance policies can cover the cost of notifying customers and replace lost income as a result of a data breach. In addition, policies can cover legal defense fees a business may be required to pay as a result of the breach.
It’s important to remember that it is cheaper to prevent a data breach by securing data than it is to lose that data from a breach. A data breach insurance policy can give you peace of mind and allow you to allocate resources to help keep data secure.
If your company handles critical assets such as customers’ personal data, intellectual property or proprietary corporate data, you are at risk of a data breach. It doesn’t matter if you are a Fortune 500 company or a small “ma and pa” shop—cyber thieves are always looking for their next score. It is often assumed that smaller businesses can escape attention from cyber crooks, but according to Verizon Communication’s 2013 Data Breach Investigations Report, 31 percent of data breaches were at companies with 100 or fewer employees. No company of any size is completely safe from a data breach.