Cyber and Data Breach Insurance for Columbia, Baltimore, MD and Washington, DC
Including the greater Chesapeake Region
Get Protection Started for my Data
There are few businesses left that don’t use computers in some way, shape, or form. In 2017, small businesses spent $686 billion on computer & technology services.
That’s a big investment, but it’s also a fragile one. Losses or exposure of private data could cause not only the business, but also others, significant personal damages. You’ll likely need a specific type of coverage, called cyber liability insurance, to assist you with such occurrences. The McFarlin Insurance Agency can help you obtain specific coverage for both first-party and third-party losses.
Cyber Liability Insurance Explained
Even though only 27% of small business owners say they receive regular IT services, 66% of them say their business would fail if they didn’t have access to wireless technology.
So, if something happens to your data, it could cause a sudden halt in operations. Or, perhaps, it could result in the exposure of someone’s private information. Fault for the breach or cyber-attack could fall on the business. That might be an extremely difficult challenge to overcome.
Cyber liability insurance helps you out in these cases. Policies allow companies to navigate the complex costs and responsibilities of a data security event. You’ll be able to afford the resources to help you make repairs to systems, compensate others, and even deal with public fallout of the accident.
The Types of Cyber Liabilities
A system failure causes data to disappear or be deleted, even if it’s backed it up.Numerous incidents, both malicious and unintentional, could cause data exposure, damage or losses.
- Damage to hardware could cause data loss. It might not be possible to recover the information.
- A hacker, or even an employee, steals private information.
- Ransomware attacks might occur, where a hacker attempts to extort money from the business in exchange for releasing the data.
Since lost data might include both business information and the private information of others, such events might create numerous liability risks for your business. Insurance should be a solution.
What are the benefits of cyber liability insurance?
If your business or household has a cyber liability policy, the coverage can help you navigate your recovery from a data loss event. There are two types of coverage, first-party and third-party liability coverage. Your business might need one or both policy elements.
What is first-party coverage?
This coverage can apply to the business’s own losses sustained because of a data breach. For example, coverage might pay for:
- Lost income if you cannot operate while dealing with a cyber threat
- Regulator fines in case you have to report losses to the authorities
- Public relations costs associated with the loss
- Notification costs of alerting customers to the exposure of their data
- Privacy and credit services monitoring for customers whose sensitive data was lost
- Ransom costs paid to cyber extortionists
Some policies also pay to repair damaged computer systems and get new data monitoring services.
What is third party coverage?
This coverage makes sure you can afford settlements for lost or exposed information of others. It pays when a business makes mistakes that harm someone else. For example, coverage can apply if you:
- Fail to keep a client’s computer data safe from virus attacks or ransomware.
- Accidentally misuse or expose private client data.
- Supply a system with improper components that leave it exposed to data losses.
This is often the coverage used by computer system managers and IT companies. You can think of it as a policy you would use if you are in charge of other parties’ data, but subsequently harm it.
We’re Experts at Protecting Your Business
Your cyber liability insurance needs to adequately reflect the uses, risks and financial investment associated with your business’s data use. McFarlin Insurance is dedicated to helping you find the appropriate balance of coverage, affordability and security benefits. We understand that every company that uses data has unique needs, so we want to make sure your policy reflects those at all times.
Insuring Data Networks to Your Specifications
Every business uses data in a unique way. Your cyber insurance should reflect that. Here at McFarlin Insurance, we will insure your data networks in a comprehensive manner. We work with you to research and compare various policies to help you find one that most effectively protects your business.
So, don’t wait until you face a data crisis to find out you don’t have any backup. Call one of our experienced agents today at (410) 312-7800.