Your computer systems are at risk of being hacked, stolen or compromised. If you experience a cyberattack, the following are some of the common costs associated:
Liability—If you experience a cyberattack, you could be liable for costs incurred by customers or other external parties.
System recovery—Repairing or replacing computer systems or lost data can result in significant costs.
Notification expenses—In some states, you are required to notify customers if their data is compromised or is suspected to have been compromised. This can be a costly endeavor, depending on your customer base.
Regulatory fines—Businesses are often required to protect consumer data. If you aren’t insured and experience a cyber attack, you could be required to pay costly fines.
Class action lawsuits—Compromised data and privacy could lead to class action lawsuits depending on the scale of the data breach.
Cyber attacks can create significant financial hardship if you’re not properly insured. Contact your agent to discuss your state’s requirements and your business’s needs.