Being the owner and operator of a company in this day and age can be more difficult than ever due to the technology risks associated with data breaches. With the increased use of technology and software to support business’s day-to-day activities, the number of data breaches and identity thefts go up. Now, more than ever, it is important to protect your company’s information and assets from data breaches.
How does an owner protect their business? One way to do this is to implement more stringent identification protocol and protections for your information. Another is to acquire Data Breach Insurance to cover you in the event of a cyberattack. This type of insurance can help you recoup the amount of money lost in the attack. Although you may already have other insurance, this kind of insurance is specific to data breaches.
Data breach insurance covers a business financially in the event of a data breach. In some cases, hackers do not gain access to very important information, allowing you to recover faster. However, if a cyber attacker accesses highly sensitive information, data breach insurance provides coverage specific to these situations.
Should My Company Have Data Breach Insurance?
If your company deals with any kind of sensitive information, you should have a data breach insurance policy. You do not want to be left out in the cold if a data breach occurs, and employees can get awfully nervous about their positions when a big event happens. Taking all precautions to ensure that you will not have to deal with a huge loss in revenue in the event of a breach is necessary. No matter how many safety measures are in place at a company, insurance is a back-up plan that you should have in place.
There are different policies within the data breach sector, so it is important to choose the one that works best for your company. Depending on a number of factors, you may want to get more or less coverage to be fully protected. Deciding between different policies can take a while, but knowing what you need can help you narrow the choices down. Some factors to consider while choosing a policy are the area in which you operate, the type of data you collect and store, and the protections you currently have in place.
Where You Operate
Depending on which area you live in, each state and county could have varying insurance policies to choose from. With different regulations at both the federal and state levels, you will have to know what is available where you are. Taking to a local insurance agent about your options can be a great way to figure out which policy is the right fit for your business.
Type of Data You Collect and Store
Every business stores its information in a different way, but the specific data they collect and store varies tremendously as well. For example, while a company may collect a high volume of information from other companies, it may not use all of it. This unused data may be more easily accessible for theft than others. Knowing what data you use the most and how often you need it can help you find the perfect policy.
Kinds of Protections You Have in Place
Because larger companies are more difficult to infiltrate, they are not often the main targets of cyberattacks. Consequently, many cyber attackers focus their sights on smaller companies. Small businesses do not always take the necessary precautions to keep their information from being accessed by outsiders and often do not have enough protections in place to defend against these cyberattacks.
If a company does not have adequate procedures in place to handle these attacks, it may be left vulnerable to a data breach. Having multiple forms of protection is one of the greatest ways to prevent attacks, so installing firewalls and using multi-factor identification systems can reduce the need for a more expensive policy.
Contact MFE For More Information About Data Breach Insurance
As technology advances, there will likely be a large number of additions or changes to these current policies. Keeping up with the current policies and knowing what is available to your business can keep your data safer. Staying in touch with an insurance broker and asking about new options can keep you up to date on the latest trends so your business is safer.
If you want to find out how to obtain Data Breach Insurance to keep your business assets safe from cyberattacks and hackers, then you should contact one of the experienced Technology Insurance Brokers at MFE Insurance for more information about what policies are available to you and for assistance finding the best option for your business.