managed IT services PhiladelphiaA cyber liability insurance, also known as a cyber risk insurance, is a cover that helps organizations to mitigate risk exposure by offsetting the costs that come up with recovery in case of a cyber-related security breach or any exposure arising from internet communications. With cyber liability insurance, a business can survive cyberattacks and data breaches with the help of a managed IT services provider in Philadelphia.

Cyber liability covers two major parties: the first party and the third party. First party coverage takes care of expenses when your data is stolen or network is compromised. Third party coverage protects you if a partner or client sues you for allowing a data breach to take place.

Some of the risks that cyber liability insurance covers include the following:

  • Crisis management
  • Business interruptions
  • Privacy issues
  • Data storage
  • Copyrights
  • Virus transmissions
  • Extortion
  • Fraud and theft

When is Cyber Liability Insurance Necessary?

Cyber liability insurance is needed the moment you become an owner of a website or you assume the legal liabilities of a publisher. It becomes your legal responsibility to offer protection for customer privacy information. It is simple to create a website, but that website will come with so many exposures.

Previously, cyber liability insurance only covered information technology companies such as managed IT services companies in Philadelphia. However, today, the trend has changed and the coverage now applies to almost all industries. Any business that has clients or employees’ personal records faces the risk of cyber exposure. This is regardless of whether the information is stored electronically or through non-electronic formats.

Most states have enacted legislation in response to data breach issues, and this legislation applies to all businesses. For instance, once a breach occurs, the legislation requires that you notify all your clients even if you are not sure whether their personal info has been used maliciously. The notification may require credit-monitoring services for any affected individual. This process can be quite costly as the average cost for a single person is $188.

Why the Need for Cyber Liability Insurance?

When reviewing your business’ insurance policies, you must prioritize cyber liability insurance. This is because the internet brings forth so much exposure, especially for internet businesses. Given the fact that traditional insurance products do not take into consideration internet exposures, you will need an insurance policy that does, and that is cyber liability insurance.

Personal information, such as a scanned utility bill, usernames, and passwords, hold so much worth to a hacker. Be aggressive and partner with a managed IT services provider in Philadelphia like Partners, Plus Inc. to learn more about cyber liability. Contact us today for more information.