In today’s modern business setting, robberies can occur without anyone walking onto the premises. The thieves don’t carry the stolen items out the door; the burglars remove the goods over the phone or cable line. Data breaches like this occur every day, and if one happens to your company, it can lead to expenses and litigation that destroys your company. Insurance companies have responded to this new type of risk by creating data breach insurance to protect today’s businesses from cyber-attacks.
As a business owner, you take steps to secure your client’s information, but when that’s not enough, your company puts itself in legal danger. Data breaches can have severe consequences for unsuspecting companies when their clients pursue legal action against them. This action can take many forms, including settlements, copyright infringement and employee privacy violations. Without adequate insurance coverage in place, you could find yourself forced to pay any and all legal fees and awards out-of-pocket.
If your company doesn’t have the financial resources to covers costs such as these, you should protect yourself and your business by taking out data breach insurance today. With more and more business done over the internet, you owe it to your company and your employees to make sure their information is safe from attack.