Minimize losses when your company becomes a victim of a cyberattack
July 26, 2022
If a malicious software attack or data breach does occur on a remote or stationary employee’s work computer, Cyber Liability insurance will cover the damages.
This insurance comes in two varieties:
- First-party Cyber Liability insurance – covers damages from a data breach on your own systems. This includes such areas as the costs of notifying affected customers, business interruption, system failure, reputational risks, reconstruction of damaged systems and paying for credit and fraud monitoring.
- Third-party cyber liability insurance – provides protection when a data breach compromises your clients’ systems and information. The coverage applies whether it happens at your place of business or remotely. If a client sues your business over a data breach, third-party cyber liability insurance will pay for such areas as breach costs, PCI fines, regulatory fines, cyber extortion, data recovery, legal fees and other damages.
For IT businesses, most insurance providers will bundle both types of Cyber Liability policies with technology Errors and Omissions insurance.
Commercial Property insurance may not cover remote business assets
If you have equipment, inventory, or other assets you want to protect, having commercial property insurance is a must. This coverage reimburses you for business property that is lost, damaged, or stolen from your business locations.
But does this policy cover items as you and your workers make the transition to remote work? It depends.
Many remote employees aren’t covered while working from home. Standard commercial property insurance generally covers property that is on the premises of your office or facility. But it may exclude or significantly reduce coverage for property away from the office.
Double-check that your commercial property insurance covers business property used off-site by remote workers. An employee’s homeowner’s insurance policy typically won’t pay to replace a business-owned laptop that was stolen or damaged outside the office.
You must ensure you have the right insurance for employees, data, and equipment
As many workers continue to adapt and adjust to remote work for the long haul, it’s important that you have the proper coverage to protect against telecommuting and cyber losses risks. Having to pay out of pocket for uncovered losses will only cause your business more financial hardship and can be avoided by having adequate coverage.
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