As reports of corporate security breaches continue to frequent nightly news, consumers and business owners have become increasingly concerned with the future of their data. Since no industry is immune to attack, businesses have started including big data insurance in their policies to protect themselves and their clients in the event of an attack. This step is an important component of risk management for businesses large and small, supplying important resources in the event of a cybersecurity incident.
Liability and Defense Coverage
Companies wanting to strengthen their defense against network attacks can add a customized policy onto their existing programs. Two main types of coverage dominate the big data insurance sector:
- First-party response: helps the insured immediately address customer and business needs by providing financial compensation following an attack.
- Third-party defense and liability: offers protection in the event of a lawsuit following a data breach.
In addition to the basic benefits of big data insurance plans, policies can also be tailored to suit the unique exposures of individual companies and the industries to which they belong. First-party coverage might include legal and forensic services for determining whether a breach occurred, reimbursement for cyber extortion perils and business interruption expenses, and support for the costs involved in notifying affected clients and employees. Third-party defense can be customized to include electronic media liability, employee privacy liability and coverage for awards and settlements following a lawsuit.
Strengthen Your Risk Management Planning
While no company plans to be the victim of a cybercrime or attack, having measures in place to respond to security breaches builds confidence in your employees and customers. By tailoring a plan to reflect the unique exposures of your organization, you can mitigate the risks associated with conducting business online.