When large companies suffer a data breach, the costs related to the event can end up in the millions of dollars. There are costs associated with the investigation, responses to the loss, lawsuits, and regulatory fines.
Small companies can also be subject to such costs but not be as equipped financially to absorb the impact. This is why a personalized cyber liability insurance policy should be considered.
Ethan Miller, an insurance attorney at Hogan Lovells, recently wrote for USA Today Cyberinsurance is latest small business safety net. He describes cyber liability policies that are available to small businesses.
Not only do cyber policies cover damages it must pay its customers, it also can include any or all of the following:
- Investigative Expenses – This can often require IT forensic examiners
- Notification Expenses – Customers who may be potentially affected by the event must be notified
- Negative Publicity Expenses – Public Relations firms may be needed to restore public opinion
- Legal Expenses – These range from covering the small business’ rights as well as the customers protection for identity theft
- Regulatory Expenses – Fines and Penalties levied are not uniform and can be very costly
To read the entire article go to http://www.usatoday.com/story/tech/2013/03/01/cyberinsurance-cyberattacks-small-businesses/1954399/