In 2019, D.C. had $750,576,000 in commercial insurance claims paid alone. If you own a company, there are several exposures you'll need to include in your coverages. Cyber liability insurance is one policy that is often overlooked but is highly necessary.
Fortunately, an independent insurance agent can help with coverage and premium options. They have access to many carriers so that you get the best options around. Connect with a local expert for custom quotes today.
What Is Cyber Liability Insurance?
In D.C., your business will need a variety of commercial coverages. Cyber liability insurance is necessary to avoid financial ruin. 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 policies, the cost will vary from entity to entity. Cyber liability insurance is no different and will have its own set of factors insurance companies look for when rating. 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?
If you use as little as an email address for your D.C. business, you'll need cyber liability insurance. The risks online for a potential cyberattack or hacking are high and common. 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 D.C. cyber liability insurance will have two components that will help pay for a claim. The first is data breach coverage, and this will apply at the very forefront of a loss. The second is the cyber liability portion, and that picks up the rest. 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're the owner of a D.C. law firm, you understand how sensitive data can be used in the wrong hands. Since your business is based on client information, cyber liability insurance is absolutely vital to your practice. Check out what it will help a law firm pay for in the event of a cyber loss.
- Attorney fees
- Defense fees
- Settlement fees
- Informing the public
- Informing your clients
Cyber Liability Insurance for Small Businesses
In D.C., there are approximately 76,083 small businesses in operation. When you own a company, you'll need adequate protection for all the what-ifs. Here are some reasons why you'll want 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
Technology companies in D.C. house a lot of sensitive data. Most are client and employee related and could open up a significant loss for you and your customer if exposed. 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 commercial 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 D.C. Independent Agent
If you're looking for commercial coverage that doesn't break the bank, consider using a trained professional. There are so many insurance policies out there that it is hard to know what applies to you and your D.C. operation. Cyber liability insurance is one coverage that you won't want to be without as a small business owner.
Fortunately, an independent insurance agent can help with policy and carrier options from their vast network of local markets. They do the shopping for you at no additional cost so that you can save time and premium dollars. Get connected with an expert on TrustedChoice.com to begin in minutes.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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