Data breach insurance is a type of monetary coverage purchased by organizations to protect financial interests in the event of data loss. Data breach insurance and cyber liability insurance help cover a variety of data security breach costs such as:
- Identity protection solutions
- Public relations reputation damage
- Legal fees
- Liability
In the event of data loss, data breach coverage is critical to help restore the public’s confidence in your business. Reducing the risk of civil litigation and other penalties, a data breach insurance policy can provide access to the appropriate professional assistance to help businesses comply with laws and regulations.
Types of Cyber Insurance Coverage
Data breach coverage can have first-party provisions, meaning coverage’s pertaining to the insured organization itself, and third-party provisions, meaning coverage’s for affected parties outside of the organization.
Examples of first-party data breach insurance provisions include:
- Data breach investigation costs
- Hardware and software damage costs
- Fines incurred by lost data
- Lost Revenue
Examples of third-party data breach insurance provisions include:
- Lawsuits from individuals due to data loss
- Fees incurred for aiding individuals in the event of data loss
Do I need Cyber Insurance?
If your organization or business stores private information of any type, insurance should be considered. Some of examples of customer/patient records include:
- Medical histories
- Credit card information
- Bank account numbers
- Social Security numbers
Additional factors in deciding whether to purchase data breach insurance or not depend on the amount of data you collect, the amount of time you keep it, and the extent to which you use collected data.
Cyber threats are on the rise, affecting businesses of all sizes, along with the cost of data breaches. Data breach insurance is not only a smart business investment, but an essential one. Contact Integrated Axis Group, LLC at (877)220-1910 to learn more about our partnership with Parassure and the various cyber insurance policies we offer.