Arizona Cyber Liability Insurance
How to get the right adviser
Written by
Candace Jenkins is a licensed insurance advisor with over a decade of experience. She is also a writer and loves to write on all things insurance. Candace writes for TrustedChoice.com on a continuous basis and is here with the facts about all your insurance inquiries.
Reviewed by
Jeff Green has held a variety of sales and management roles at life insurance companies, Wall street firms, and distribution organizations over his 40-year career. He was previously Finra 7,24,66 registered and held life insurance licenses in multiple states. He is a graduate of Stony Brook University.
In Arizona, there are 571,495 small businesses. If you're one of them, you could be at risk. Cyber liability insurance will be a primary policy you want to obtain.
Fortunately, an independent insurance agent can help you find a policy for a low rate. They have access to multiple markets so that you have options within your budget. Connect with a local expert to get started.
What Is Cyber Liability Insurance?
Your Arizona business is likely to need protection against cybercrimes. In this day and age, there are many opportunities for criminals to act. When your system is exposed, they could potentially strike and put your business in harm's way.
Cyber liability insurance will help pay for legal fees and damages associated with a cyberattack. When you're business data gets breached, you'll be responsible for the loss. Without a policy, your operation will be exposed financially.
Who Needs Cyber Liability Insurance?
In Arizona, $6,937,130,000 in commercial insurance claims were paid in 2019. Some of those were cyber liability losses. If you're not prepared with the right coverage, your business could be on the line. Take a look at where cyber liability insurance is most helpful:
- If you own a business, whether small or large
- If you use email
- If you have internet
- If you utilize software or computers
- If you obtain employee or client data electronically
Cyber Liability Insurance Cost
Each business policy will have its own unique pricing. From commercial auto insurance to general liability coverage, your Arizona business will need a lot of protection. Take a peek at what carriers use to determine your cyber liability premiums:
- Gross annual income
- Cyber protection plans in place
- Updating of software
- Type of data stored
- Access points to data
- Malware used
- Prior claims
Your cyber liability costs will depend on what industry you are in and your risk factors. Consider bundling your business policies for added savings. When you put all your policies with the same carrier, you'll get a considerable discount.
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Cyber Liability Insurance for Law Firms
Arizona law firms need to be aware of the risk of online threats. Cybercrimes are not uncommon for law practices due to the information that is collected. Since your firm houses sensitive data, criminals target these types of industries.
The only way to be genuinely protected is by obtaining the right policy beforehand. If your database gets hacked, attorney-client privilege is out the window. Your firm's reputation is on the line when you fall victim to a cyberattack.
Cyber Liability Insurance for Small Businesses
Small businesses are especially vulnerable to stolen data. They typically have less protection when it comes to client and employee information. Most small businesses operate on a tight budget and wouldn't have the funds to pay for a lengthy legal battle.
Criminals home in on the weakest part of your company and attack. All it takes is one click by an employee, and your whole system is compromised. With Arizona having 1,000,000 people working for small businesses, the chances are high that you need cyber liability insurance.
Cyber Liability Insurance for Technology Companies
Arizona technology companies should be aware of the risk of cybercrimes for their clients. However, many fail to obtain adequate protection for themselves. With the amount of access your company is given to help clients, your business must be adequately protected.
A professional liability policy isn't the only coverage your technology business needs. General liability, commercial auto, and cyber liability will be necessary in most cases as well. Review your current policies for any gaps before it's too late.
Cyber Liability and Data Breach Insurance
Your Arizona cyber policy will have two parts of coverage. One is data breach, and the other is cyber liability. Each will play a role when a claim is reported. Check out how it works:
When data breach coverage applies:
Data breach coverage will apply when you have a breach of data, and you need to restore what was compromised. Coverage can be in the form of alerting the public of breach, fraud, identity restoration, consulting services, and more. This coverage is utilized first.
When cyber liability insurance applies:
Next, cyber liability insurance would apply when an employee, client, or member of the public files a lawsuit. The lawsuit is due to the data breach that occurred and any sensitive information that may have been stolen. Cyber liability will pay for defense and settlement costs.
How to Connect with an Arizona Independent Agent
In Arizona, owning a company is part of the American dream. If you don't protect it, you could be at risk and even out of business. Cyber liability insurance is often overlooked but shouldn't be.
An independent insurance agent can review your current policies and make recommendations on coverage. They have access to multiple carriers so that you have options on rates. Connect with a local expert on TrustedChoice to get quotes at no cost.