Business information is now often stored or handled through digital means, whether on a computer or server, over a network, or online. It’s convenient and resourceful to do so and, in some cases, it’s far more secure than physically storing information. However, digital theft is still possible, and the methods to do so are quite different from physical robbery. Sometimes, this can be as simple as an employee sending an email to the wrong address. Other times, it can be an advanced persistent threat (APT) which involves extended and more intentional security penetration. Regardless of the way a business’s data is stolen, most general liability policies are not enough to cover the losses involved. Due to this, finding a data breach insurance coverage which fits your needs as a business with virtual storage can be an incredibly important step in protection.
Why Do You Need It?
Unfortunately, hackers are regularly coming up with new ways to break cyber security, so it’s not possible to have perfect protection. On average, claims involving data breaches reach nearly $700,000, which could be financially devastating for any company, let alone smaller businesses. Meanwhile, data breach insurance coverage generally will cost under $1,000 for smaller and medium-sized businesses. That is a much easier number to process, possibly saving your business hundreds of thousands of dollars.