Cyber Liability Insurance in Connecticut – An Overview

Anyone who owns a computer should be concerned about hackers since some of the largest companies have been hacked in recent years. Even tech giants such as Facebook, Google, and Yahoo have suffered major breaches, not to mention financial institutions such as JP Morgan Chase and Citigroup. Therefore, having the right cyber liability insurance in Connecticut is essential to protect your digital assets, especially if you own a business.

Internet Dangers for Any Business

The concept of cyber liability is fairly new after a few decades of mass computer and internet proliferation. While many people still don’t worry much about cybercrime, it’s an underworld activity growing in sophistication that targets any business network, stealing their confidential data. Criminals will then sell this stolen data to other criminals on the dark web. That means your personal information might be sitting in a criminal’s database, waiting to be exploited in a variety of ways.

Reasons to Pursue Cyber Liability Protection

One of the worst things that can happen in cyberspace is if a hacker uses your computer as a decoy for fabricating the origin of a breach. If the hack does trace back to your computer, you may have to face scrutiny from law enforcement agencies as well as lawsuits from victims. Having the right cyber liability insurance in Connecticut, however, protects you from these serious disruptions.

Another major concern is if your business network gets hacked and personal data on your customers is breached. The problem is even worse if you are in an industry like healthcare in which patient data is compromised, leading to heavy government fines. Your firm might even get stuck with the bill to investigate the crime, which can cost thousands of dollars.

The cost of repairing your company’s reputation is another deep consideration since this value might be impossible to estimate at first. Once people find out your company has spread viruses, it can lead to significant revenue loss. If your system contaminates other systems with bugs, you better have cyber insurance in place, or it can collapse your business overnight. Such a setback might require hiring an expensive PR firm to rebuild your company image.

Adopting Risk Management with Insurance

The best way to protect your business against any future disaster is to practice risk management strategies defined by industry leaders. Part of this solution includes investing in cyber liability insurance coverage. Without this coverage, you can face heavy lawsuits in which court and attorney fees will drain your budget. Clearly, it’s necessary to secure the right coverage so that your equipment is protected, along with liability coverage, in case your system infects another entity’s system.

When you purchase cyber liability insurance, your insurer will conduct an assessment of your IT infrastructure to make sure you have adequate coverage. The assessment audit will alert you to system vulnerabilities so you can prepare better against future cyber threats.

In the event your business experiences downtime from a cyberattack, regular business interruption insurance likely won’t cover all your losses. It may pay for physical property damage, but it won’t cover your revenue loss or reputational issues caused by a cyberattack. Thus, you need a special plan that specifically covers cyberattacks and their aftermath.

Starting a Business in Connecticut

If you plan on launching a new business in Connecticut, be aware of all the state’s requirements for commercial insurance. Computer systems are now used across all industries, yet, cyber liability insurance is separate from a regular business liability plan. Some of the hottest industries in the state, such as large-scale manufacturing, healthcare, and digital media, are at risk of being attacked by cybercriminals.

While the state does enforce insurance mandates, most state laws affecting business insurance leave coverage decisions up to the business owner. Working with an experienced IT consultant will help your business fight cybercrime. However, no computer system is completely immune to security breaches. Even the most elaborate layers of cybersecurity can be penetrated by the most skillful hackers.

That’s why you still need special cyber insurance in case your company is attacked. The coverage will pay for damaged hardware and software so that you don’t have to dip into your personal savings to replace them. Any company that stores personal data in a database that connects with their network should be concerned about protecting private information. Tourist attractions with websites that attract online traffic from around the world are particular targets that need the best cybersecurity and cyber insurance protection possible.

Choosing the right cyber liability insurance can be done by researching various plans, but it’s most helpful to speak with an experienced insurance professional.

Does your business need cyber liability insurance coverage in Connecticut? Chances are, if you serve hundreds of customers or clients through an online network, you’ll need the coverage. The digital world brings many unknowns into a business, so it’s best to be well protected against cyberattacks such as phishing schemes for ransomware that can lead to millions of dollars in damages. Contact our experts at The Reardon Agency to learn more about sufficiently protecting your business with the right cyber liability insurance coverage in Connecticut.

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