What is data breach insurance? How is it helping companies today? Read on to know more about this.
What Is Data Breach Insurance?
A data breach is the exposure of sensitive data to unauthorized users. In simpler words, it is the loss or theft of confidential data, which can compromise the security of an individual. Because of this, companies face a lot of financial loss.
So, what is data breach insurance? It is an insurance policy that offers protection against the cost incurred by a company due to a breach. This type of insurance can be implemented in addition to the existing cyber liability policy.
Data Breach Insurance Vs. Cyber Liability Policy
What is the difference between cyber liability policy and a data breach insurance? The major difference between the two is that the former offers coverage only if a breach occurs. On the other hand, the latter offers coverage regardless of whether or not there has been a breach.
A cyber liability policy may cover only some aspects of a breach whereas a data breach insurance covers all aspects of it.
Features Of This Insurance
What features does a this kind of insurance have? Here are some:
- Allows For Comprehensive Coverage. It can cover different aspects of a breach including legal and investigative fees, notification costs, and lost business income. This insurance’s design is to cater to the needs of a company that is suffering from the effects of a data breach. By providing comprehensive coverage, it ensures that the company can mitigate all kinds of financial loss.
- Allows For Coverage Against The Cost Of A Data Breach. It helps to ensure that the cost incurred by the company due to a data breach is covered.
- It Covers Data Breaches Resulting From Cyber-Attacks. This policy covers data breaches resulting from cyber-attacks. In other words, it is not limited to data breaches resulting from theft or loss of devices but can also cover data breaches that are a result of hacking.
- A Cyber Liability Policy May Not Cover All Aspects Of A Data Breach. Unlike a cyber liability policy, this insurance covers all aspects of a breach. It offers protection against costs incurred in many areas.
Why Your Company Needs One
Data breach insurance has proven to be beneficial for companies in various ways. By providing coverage against the cost incurred by an organization due to a data breach, it ensures that there are no financial losses caused due to this unfortunate event. Also, it helps organizations to protect their reputation. A company needs to have a good reputation so that it can continue to thrive in the market.
Data breach insurance is beneficial as it offers protection against all costs by the company due to a breach. This means that the affected company will be able to recover from the embarrassing situation caused by a data breach and will be able to continue its work without any financial losses.
So, what are you waiting for? Get yours today!