A survey by the Secret Service and Verizon found that 72% of data breaches involved small or mid-sized businesses. Since case law is split on whether property or general liability policies cover the losses resulting from a data breach, consider buying a specific cyber liability policy.
In order to select the right cyber liability policy for your business, consider the following:
- Does your business have potential third party liability because it maintains information of third parties?
- Does your business provide apps or programs that could be compromised and infect other operating systems?
- What does your state law require in terms of disclosing data breaches?
There are subtle differences between competing cyber liability policies that may make one policy far more suitable for your business than another.
Originally published as part of our February 2014 Tip of the Month: Getting UP to Business