If you own or manage a business, it is imperative you understand your company’s cyber liability. It is not enough to simply know what cyber liability is. Savvy business professionals understand the many different ways cyber liability can impact their unique organization. Below, our IT support team on Long Island provides a look at what cyber liability really means and the many misconceptions surrounding this subject matter.
The Basics of Cyber Liability Coverage
Cyber liability coverage exists as a form of coverage for data breaches. This coverage has morphed from insurance for IT companies to protection that nearly every type of business requires. Unfortunately, every type of business, regardless of niche or size, is vulnerable to data breach exposure. If you do not make a concerted effort to protect your data and prevent breaches, it is only a matter of time until you lose valuable data and your hard-earned money. Let’s take a look at the top cyber liability misconceptions.
Misconception #1: A Business That Does Not Store Credit Card Data Has No Risk
Confidential information is defined as personal data ranging from Social Security numbers to email addresses, street addresses, banking account information, data regarding family members and government ID numbers. If your business has any such data, it must be protected just as comprehensively and fiercely as credit card data. Our IT support team on Long Island is willing to review the nuances of your business and apply the appropriate cyber security solutions optimal for your specific organization.
Misconception #2: Only Massive Companies Require Cyber Liability Coverage
Companies of all sizes need this important form of protection. Unfortunately, small and medium-sized businesses typically lack the protection necessary to prevent cyber theft. Hackers are well aware of this fact and adjust their targets accordingly.
Misconception #3: If a Breach Occurs, It Won’t be a Big Deal
The sad truth is digital breaches have the potential to result in tens of thousands of dollars in losses. If your organization falls victim to a cyber breach, you will likely lose at least a few hundred dollars. Every single state in the country has laws on the books that put the onus on companies to provide financial compensation to those harmed by data breaches/loss. In fact, it might be necessary to take out identity theft insurance for each record breached.
Misconception #4: Regular Business Liability Insurance Accounts for Cyber Liability
Conventional liability insurance will not prove applicable in the event of a cyber breach. You will need a completely separate form of insurance coverage for the exposure resulting from this type of data breach.
It is clear cyber liability is quite the complex area of the law. There is no shame in asking for assistance with digital security and minimizing your company’s cyber liability. Reach out to our IT support team on Long Island at Total Technology if you have any questions or to know our IT services on Long Island.