Cyber Liability: Taking responsibility for data breaches

Cyber liability is an important asset for your company. It’s this simple: when hackers or data thieves steal information from consumers, it leaves people distrustful — and less likely to use your services again. Cyber liability coverage protects companies from property and monetary losses related to online business. And no matter your business, any data online is free game for hackers and identity thieves. While systems to prevent such data breaches are still being perfected, it's critical you have a plan in place in case an intrusion occurs.

That’s where cyber liability comes in.

According to the International Risk Management Institute, cyber liability policies cover property liability from matters such as business interruption and cyber extortion. Such coverage also bears the cost of credit monitoring, which can be a common remedy offered in cases of customer data being compromised.

Multiple high-profile companies, including Target, JPMorgan Chase & Co. and Michaels, have dealt with data breaches involving stolen customer information. Not only was this harmful to customers entrusting these companies with their information, but it was also detrimental to the companies themselves.

Ultimately, cyber liability can help firms limit exposure to the nightmarish scenario of online intruders stealing customer and/or proprietary data. And such risks aren’t going away anytime soon, if ever.

If you would like more information on cyber liability or would like to know about the many strategic insurance solutions Plexus provides in property and casualty and other fields, visit us on the web at plexusgroupe.com or contact a Plexus professional at 847-307-6100 (Chicago), 972-770-5010 (Dallas) and 405-241-9462 (Oklahoma City).