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FRIDAY, AUGUST 4, 2023
There are numerous costs that might arise from data breaches, which is why cyber liability coverage is designed to cover many different cost burdens. These might include:
Notification Costs
If sensitive customer information were to be stolen from your company networks, you are required by law (in most instances) to notify customers of the issue. Depending on your company’s structure, you might also have to notify certain government entities. Your cyber liability plan will ensure that any costs incurred by making these notifications are paid for. 
Customer Identity Protection
Most data breach issues immediately raise concerns about identity theft for those impacted. However, cyber liability insurance policies will offer you the option to provide identity protection services, such as credit monitoring and social security number tracking, to ensure that they never have to worry about someone using their information dishonestly.
Data Recovery
You will naturally want to see if it is possible to recover destroyed or compromised data. After all, if you can get the information back, then your losses might be much lower than they would be if the data was a total loss. This benefit can help you do so, while still re-securing your system for the future.
Extortion Reparations
Cyber thieves might not just steal information, but also might demand compensation (I.e. a ransom) in an attempt to extort money from you. Under a ransomware attack, you might have to consider whether you will have to pay this money in order to recover data. You can receive compensation to allow you to cover these expenses.
Loss of Income
At times, cyber security incidents will interrupt your ordinary operations, and you might be forced to pause your work in order to minimize your losses. If you suffer a loss of income during this period, then your policy can often pay to help you recover the costs.
Legal Assistance
When third parties (I.e. clients) are involved in cyber security incidents, they might hold your business responsible for the losses they sustained. If they were to take legal action against you, then your own legal fees might skyrocket. However, cyber liability insurance can provide you with the compensation necessary to cover these costs.
Various other types of protection might come as part of your company’s cyber liability insurance. Therefore, work closely with your insurance agent to determine the right way to insure yourself in the most expansive way possible.
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