In 2019, New Mexico had $2,205,237,000 in commercial insurance claims paid alone. You'll have to account for all that could go wrong when you own a business. Cyber liability insurance is one policy you won't want to be without in this day and age.
Fortunately, an independent insurance agent can help with coverage and premium options. Your business will have the best policies to choose from because they work with a network of carriers. Connect with an expert to start saving today.
What Is Cyber Liability Insurance?
Your New Mexico small business will have specific risks associated with your daily operations. Cyber liability insurance will help protect your online presence from predators. Check out how it works below.
- 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
Cyber liability insurance costs will vary from business to business. Like your other commercial policies, pricing is unique to each insured. 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?
In New Mexico, if your business uses a computer, you'll want cyber liability insurance. Hackers can weasel their way into your sensitive data by pretending to be someone else. It only takes one click, and your entire system is compromised. 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
Data breach and cyber liability insurance are together on one policy. They will protect different parts of your New Mexico business should a cyber liability claim occur. 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.
Cyber Liability Insurance for Law Firms
If you run a law firm in New Mexico, you'll have to account for all the what-ifs. Attorney-client privilege is a huge selling point for any lawyer. If your system is attacked and sensitive data were stolen, you'd find yourself in a lawsuit and with a bad reputation. Check out what cyber liability insurance will help pay for.
- Attorney fees
- Defense fees
- Settlement fees
- Informing the public
- Informing your clients
Cyber Liability Insurance for Small Businesses
New Mexico has approximately 154,804 small businesses in existence. If you own a company, there are several ways your client and employee data can be compromised online. 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
As a technology company, you understand the importance of online protection. Your New Mexico business will need a variety of liability policies to be adequately insured. From professional liability to cyber liability, you'll want to be covered for every exposure. 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 New Mexico Independent Agent
Your commercial insurance is essential to avoid financial devastation. In this marketplace, your New Mexico business can be sued for numerous occurrences. Cyber liability insurance will protect your online presence when hacked.
An independent insurance agent can help you find a policy for an affordable price through their many carrier options. Since they do the shopping at no additional cost, you'll save time and money. Connect with a local expert on TrustedChoice.com to get started.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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