In recent years, hacking and data breaches have affected almost every industry. Businesses of all sizes have had to deal with hackers and the legal fallout that follows these criminals. The insurance industry has risen to the challenge of helping companies through these crises with cyber liability coverage.
How can an insurance carrier help your company handle legal costs after a data breach? While every policy is different, you may ask your carrier to cover you in these ways:
Check the Facts
Perhaps the first thing you should do if you suspect a hack is to ensure that you have all the facts. Your cyber liability coverage can help you cover the legal and forensic costs associated with this step of the process. An expert analyst can come in and check that you were, in fact, the victim of a data breach. Then, that expert and a legal team can decide if you were complying with regulations when it happened.
If a Customer Sues
Whether you are at fault or not, you may face a lawsuit from a customer whose data the hackers stole. Even if you don’t owe a dime to the claimant, you may need to hire expert attorneys to defend your business. If you must pay out an award, that can be a considerable financial expense too. Be sure that your cyber liability coverage pays for these costs.