Just like your home or car, your business needs insurance! Insurance is an essential aspect to running a business as it provides a sense of security and protection from any unforeseen circumstances. While most business owners are aware of General Liability Insurance, Cyber Liability Insurance has become a relevant additional layer of protection in today’s digital era. Business Liability covers more general physical risks whereas Cyber Liability covers digital risks.
Business Liability Insurance
Business Liability Insurance, often known as General Liability Insurance, is a foundational policy that protects businesses against various claims that can occur. Here is what it covers:
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Bodily Injury: Covers medical expenses and legal costs if someone gets injured while on your business’ premises, like a customer slip and fall.
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Property Damage: Covers cost of damage to someone else’s property due to your business operations, like accidentally breaking a customers’ window while fixing their house.
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Personal Injury: Covers legal costs associated with claims of defamation to your business’ reputation.
What is Not Covered by Business Liability Insurance
This insurance covers the most general and common claims against businesses. But, General Liability Insurance will not cover:
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Employee Injury: Will not cover employee medical or legal costs for injuries that place on the job, but Workers Compensation Insurance will.
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Business Property Damage: Will not cover costs for damages to the business building or equipment due to weather or crime, but Commercial Property Insurance will.
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Commercial Auto Accidents: Will not cover costs associated with driving accidents that occur while on the clock, but Commercial Auto Insurance will.
Understanding Cyber Liability Insurance
Cyber Liability Insurance is designed to help protect your business from costs associated with digital claims from data breaches to cybercrime. As businesses rely on digital tools (i.e. cloud platforms, customer relationship management systems, and social media and content management systems) to run their day-to-day operations, it is critical to protect the digital data inside! Here is what it covers:
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Data Recovery: Covers the costs to recover lost or stolen data from server outages, equipment malfunctions, or cyberattacks.
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Business Interruptions: Covers the loss of income due to server outages or cyber events that disrupt business operations.
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Identity Recovery and Customer Notifications: Covers the costs associated with regaining access to affected customer’s identities and the notification of data breach.
Why You Should Add Cyber Liability to Your Business
It is only a matter of time that a cyber event takes place! Adding Cyber Liability Insurance to protect your business in the digital world is extremely important to your business’ viability. With more businesses relying on technology to store sensitive data on customers and operations, the risk of cyber attacks continues to grow. No matter the size of your business or attack, you can experience huge financial losses, reputational damage, and legal consequences. The State of Pennsylvania does not require businesses to have a Cyber Liability policy but does require the notification of data breaches to consumers, so it is worth the protection!
If you are interested in learning more about cyber liability, or want to see other ways Stickler can help your business, contact us today!
