Tennessee Cyber Liability Insurance

Your Guide to Tennessee Cyber Liability Insurance

How to find a local adviser

Tennessee Cyber Liability Insurance

In 2019, Tennessee had $6,317,565,000 in commercial insurance claims paid alone. If you're looking for adequate protection for your business, there are many policies out there. Cyber liability insurance is necessary for the majority of companies. 

Fortunately, an independent insurance agent can help with carrier and premium options. Since they work with several markets at once, they can find a policy that fits your budget. Connect with a local expert to get started.

What Is Cyber Liability Insurance?

In Tennessee, your business will have to withstand multiple risk exposures. Cyber liability insurance can help protect your company from online 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

Similar to your other business insurance policies, your pricing will depend on numerous items. Insurance companies look at several risk factors when rating your cyber liability coverage. 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?

All Tennessee business owners will need cyber liability insurance at some point. Unless you are working solely with paper, you'll be at risk for a cyberattack that could cost you hundreds of thousands of dollars or more. 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

Your Tennessee cyber liability insurance policy will have two coverage parts. One limit will be for data breaches and is used first when paying for a loss. The second is the cyber liability portion of the claim and picks up the rest of the occurrence. 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

If you own a Tennessee law firm, you know how important it is to keep your client's data private. If sensitive information gets exposed due to an online attack, it could compromise your whole case. Check out what it will help law firms pay for.

  • Attorney fees
  • Defense fees
  • Settlement fees
  • Informing the public
  • Informing your clients

Cyber Liability Insurance for Small Businesses

In Tennessee, there are roughly 603,310 small businesses in existence today. When you own and operate a company here, cyber liability insurance could make or break your business. 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

In Tennessee, technology companies are at a greater risk of being attacked because of the sensitive data they harbor. When you work with client information, your business should be adequately insured for a cyber loss. 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 Tennessee Independent Agent

Tennessee business insurance can be tricky if you're not a licensed professional. With all the coverages on the market to choose from, a trusted adviser can help with your selection. Cyber liability insurance is necessary for every business owner that wants online protection. 

An independent insurance agent will have access to several markets so that you get the best options around. They do the shopping for free so that you can save time. Connect with a local expert on TrustedChoice.com and start getting quotes today. 

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TrustedChoice.com Article | Reviewed by Jeffrey Green

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