General liability insurance is a blanket policy. It covers many of the risks related to customers or third parties who interact with your business. Yet, it may not offer enough protection for the growing threat of cyber risks. For that, most companies need to invest in cyber liability insurance. It helps to extend the protections you receive under your business insurance policy. There are a few key things you should know about it and how it works.
Isn't General Liability Insurance Enough?
It is a misconception that general liability insurance is enough for most risks. If you have a very small company, that may be the case. However, most of these policies have very limited benefits when it comes to cyber risks.
The growing number of companies using data, the internet, the cloud, and other connectivity tools is growing. For most companies, the small costs associated with cyber liability insurance make the investment a wise one.
What Does Cyber Liability Do Differently
Your basic general liability insurance policy may cover small claims and limited losses associated with cyber risk. For example, if a customer's personal data becomes vulnerable due to an employee's actions, providing credit monitoring for that customer may be good enough. However, large attacks on your database or cyber risks associated with theft can lack coverage.
With cyber liability, you also get a few types of protection you do not get with general liability insurance. For example, it can cover the cost to notify each person affected by the breach of your data. This is one of the most important ways to safeguard your customers. In addition to this, cyber liability insurance also may help with policy endorsements. For example, these may help modify your plan to cover government-levied fines and fees related to data breaches or to the claims you can make.
If you in high-risk areas or industries, cyber liability insurance is a critical investment. This includes health care industry businesses as well as financial institutions. However, most retail companies are also in need of this high level of coverage as well. The risks here are numerous. Think about how many peoples' private credit information you have on your system.
General liability insurance remains a very valuable product. Yet, it may not be enough in all cases. Adding an extra layer of protection from cyber liability can give you some peace of mind. It can also help minimize costs you would have to pay out of pocket should a data breach occur. This can be a valuable product that pays for itself the first time you have to use it.
Call an agent today at 888-512-8878 to learn more about policies that can protect your business.
Also Read: Signs You Need General Liability Coverage for Your Business