You may be wondering what data breach insurance is, why your business should have it, and the pros and cons of a policy. The answers to these questions are below in this blog post about Data Protection 101 for California Business Owners. This article will cover: What is Data Breach or Cyber Security Insurance? Learn about what a data breach insurance policy covers and whether one may be right for your organization in this week’s Data Protection 101 with cyber threats constantly on the rise coupled with skyrocketing cost of data breaches no surprise more enterprises considering data breach insurance but what is it exactly? What do you need to know before buying it? Pros & Cons of having a plan? And finally, how much does cyber security or data breach plan typically cost?
Data Breach Insurance in California
Data breach insurance is a type of monetary coverage purchased by organizations to protect financial interests in the event of data loss. Data breaches occur for a number of reasons, including hacking and poor cybersecurity procedures. The types of data stored by organizations can vary from simple, non-critical details to sensitive government intel. A cyber security insurance policy covers potential losses in the event of a cyber-related incident. Data breach coverage is a type of cyber security insurance (also known as cyber liability coverage) meant specifically for situations in which data is lost or stolen.<be>
Recent regulation has been passed that requires all businesses with more than 50 employees to offer some form of retirement benefits, including 401(k)s and other
Types of Data Breach Insurance Coverage
In recent years, data breaches have been more prevalent than ever before. In fact, a study from IBM Security and Ponemon Institute found that the average cost of a data breach has risen to $3.62 million in 2017 from $3.60 million in 2016! The reason for this is because cyber criminals are getting more sophisticated and they’re becoming harder to catch–in some cases it can take as long as six months before an organization even realizes their system was hacked!
In order to protect your company against these threats, you’ll need Cyber Liability Insurance or Data Breach Coverage. These policies will help cover costs incurred if your business suffers a data breach including investigation costs, hardware/software damage costs (and replacement), fines incurred by lost
Is Data Breach or Cyber Security Insurance Right for You?
Are you a California business owner seeking information about Data Breach and Cyber Security Insurance?
There are more than a few items to consider when purchasing this type of insurance. Here are three to start:
1) Location(s): If your company is located in or does business in the EU, you’ve undoubtedly been affected by GDPR. In the U.S., there are a number of legalities when it comes to data breaches (both on the federal and state levels). These laws and regulations result in policies across the globe that differ from nation to nation.
2) The amount of data collected: A website that collects email addresses is going to have different needs than a subcontractor who takes on extensive data from other companies. The amount of data you collect, the amount of time you keep it, and the extent to which you use collected data are all factors in the decision to purchase data breach insurance.
3) Other protections in place: No matter how prepared a company is, breaches happen. Having stringent cyber security measures in place can affect the cost of a policy.
