In 2019, Massachusetts had $8,060,079,000 in commercial insurance claims paid alone. When you own a business, you'll have to account for all that could go wrong. Cyber liability insurance can protect your company and employees online.
An independent insurance agent can help with proper coverage that fits your needs and your budget. They do the shopping on your behalf at zero cost to you so that you save time and money. Connect with a local expert for tailored protection today.
What Is Cyber Liability Insurance?
Your Massachusetts business needs coverage for many things. Cyber liability insurance can help protect your online presence. All it takes is one click, and your entire system is at risk.
- Cyber liability insurance: Pays for your legal, defense, and settlement costs when the sensitive employee or client data is compromised virtually. It will also pay for notification expenses to the public and customers when a cyberattack occurs.
Cyber Liability Insurance Cost
Like any other business insurance policy, the pricing varies. In Massachusetts, cyber liability insurance can be purchased through a trusted adviser. The exact costs will be based on your personal data and outside risk factors. Take a look at what carriers use to determine premiums.
- Gross annual income
- Cyber protection plans in place
- Updating of software
- Type of data stored
- Access points to data
- Malware used
- Prior claims
Who Needs Cyber Liability Insurance?
Cyber liability insurance is essential for every Massachusetts-owned business. If your company uses as little as an email address, you're at risk for a cyberattack. Take a look at where cyber liability insurance is most helpful.
- If you own a business
- If you own a small business
- If you own a large business
- If you use email
- If you have internet
- If you utilize software
- If you utilize computers
- If you obtain employee data electronically
- If you obtain client data electronically
Cyber Liability and Data Breach Insurance
Cyber liability and data breach coverages can be included on package or business owners policies in many instances. The two work together at different points in the claims process and cover separate items. Take a look at how it works.
When data breach coverage applies
Data breach insurance 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 alert, identity restoration, consulting services, and more. This coverage is utilized first in the claims process.
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 of a loss.
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Cyber Liability Insurance for Law Firms
Cyber liability insurance for a Massachusetts law firm will be necessary in most circumstances. Unless your firm is housing sensitive data by paper only, you'll need this policy. Check out what it will help pay for.
- Attorney fees
- Defense fees
- Settlement fees
- Informing the public
- Informing your clients
Cyber Liability Insurance for Small Businesses
In Massachusetts, there are roughly 669,224 small businesses in existence. If you're one of them, cyber liability insurance can help protect your finances from a substantial loss. Here are some reasons why you'll need cyber liability insurance if you're a small business.
- You may not have the cash flow to pay out of pocket
- Legal fees could wipe out your reserves
- There could be multiple lawsuits filed against you for one instance
- Informing the public can cost additional funds you don't have
- It will keep your business operational during a lengthy legal battle
- It can help restore your stolen data
Cyber Liability Insurance for Technology Companies
If you own a technology company in Massachusetts, you know how easy it is to have sensitive data stolen. The best way to protect your business from a lawsuit is to have the same coverage you want your clients to obtain. Check out why cyber liability insurance is essential for a technology company.
- It will pay for your legal fees if a lawsuit arises from a data breach
- If your client gets hacked due to a system you implemented, this coverage, along with your other insurance policies, may respond
- When you're dealing with other people's sensitive data, your company may be a target to online predators
How to Connect with a Massachusetts Independent Agent
When you're searching for the right business protection in Massachusetts, you'll have options. Your company is exposed to many risks that, without the right coverage, could put you into financial ruin. Cyber liability insurance is often overlooked but shouldn't be.
Fortunately, an independent insurance agent can help find a policy that fits your budget. They work with several carriers to get the best coverage for an affordable price, and you won't have to do the shopping. Connect with a local expert on TrustedChoice.com to get started today.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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