Good protocols and programs related to IT management can help businesses protect their data. Nevertheless, there are no guarantees that proactive measures will remain effective indefinitely. Businesses need to develop comprehensive risk management plans that include comprehensive cyber liability insurance.
Resources to Respond to a Breach
As soon as a business learns of a breach, it may need to act very quickly. A breach can prevent businesses from accessing the information that they need to operate, or it could even cause a catastrophic loss of data. Insurance equips businesses with the funds that they will need to implement swift corrective action.
In the aftermath of an event that compromises a business’s data infrastructure, it is prudent to conduct a thorough investigation of how the event occurred. Insurance enables a forensic digital analysis of how a breach occurred so that a business can formulate strategic countermeasures to deter its reoccurrence.
Notifications to Third Parties
Many states’ data protection and privacy laws require notification to customers after a breach that has compromised any of their personal or financial information. Insurance can make it possible to identify which customers were affected and generate mass communications
Cyber threats to businesses are becoming increasingly prevalent. It is imperative that businesses respond appropriately by developing strong policies and obtaining cyber liability coverage.