Farmville, VA, business owners aren’t legally required to purchase cyber insurance. However, it’s essential if you process or store personal information. Cyberattacks are becoming increasingly common. Having insurance to cover damage in the wake of one can spell the difference between weathering the event and having to permanently shut down your business.
Understanding Your Cyber Insurance Options
There are two forms of commercial cyber insurance. First-party cyber insurance covers the cost of recovering your data, fixing your systems, and paying fines. It covers the cost of notifying affected parties and business interruption for businesses that have to temporarily shut down because of the breach. Furthermore, first-party insurance compensates you for the expense of having an expert look at your system to determine how it was breached and take measures to prevent future attacks. First-party cyber insurance can also cover the cost of hiring a lawyer if you’re sued because of the breach, but it won’t provide funds for a settlement or judgment.
Third-party cyber insurance, on the other hand, covers payments you’d need to make to affected third parties as a result of the breach. It can cover payments to consumers even if they opt not to take your company to court. In addition to legal costs, it also covers the cost of a settlement or judgment. Furthermore, third-party coverage will compensate your company for defamation or copyright infringement if you lose valuable intellectual property as a result of the breach.
Call Gantt Agency To Find Out Which Policy Is Best for Your Business
Gantt Agency serves businesses in and around Farmville, VA. We’ll help you understand your coverage options and find the right policy for your needs. Call us if you’re considering commercial cyber insurance. We’re here to help.