Do You Need Cyber Coverage?

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According to IBM over 91 million network security failures and data breaches happen yearly. Some of the affected businesses include Home Depot, Kmart, American Express, eBay, and Target. Will the next one be yours? It doesn’t matter the size of your business. Is someone out to get even with you by shutting down your network? Or what if you lost your laptop, cell phone, or accidently sent customer account information to the wrong email address? Think about it, do you need cyber coverage?

Network Security and Privacy Liability Coverage

Network security and privacy coverage covers both first and third-party costs. First-party coverage includes costs associated with a security failure or privacy breach. Third-party coverage includes expenses associated with claims made against you. First-party costs associated with a data breach or security failure can include:

  • Legal advice
  • Costs to notify consumers of the breach
  • Credit monitoring for your consumers
  • Loss of profits
  • Forensic investigation
  • Public relations expenses

Third-party costs associated with a security failure or data breach include:

  • Costs associated with regulatory inquiries
  • Regulatory penalties and fines
  • Liability to banks regarding credit cards (if applicable)
  • Damages, settlements, and judgments due to the breach
  • Legal defense

Don’t be Caught with Your Guard Down

Be aware of what is not covered under a network security and privacy policy. The following are not covered:

  • Loss of consumers/future revenue
  • Reputational harm caused by the breach
  • Value of intellectual property
  • Technological improvements

Trouble Figuring Things Out?

Because terminology for cyber coverage is not standard, different insurers may employ different terminology which can be confusing when reading and comparing policies. Don’t spend time trying to figure things out alone. Let us make it easy for you. That’s what we are here for at the Jeff Van Matre Insurance Agency. Let our expertise work for you.

ABOUT YOUR DALLAS INSURANCE COMPANY:

With over 20 years of experience in the insurance industry, the Jeff Van Matre Insurance Agency can help you choose the right coverage plan to protect your personal and business assets. To learn more about protecting your assets without attacking your budget, call our Carrollton office today at 972-492-8500, or visit us online to get a free quote.