As a business owner in the digital world, your company is always at risk of becoming the victim of a data breach. A data breach, by definition, is when confidential information is stolen by an unauthorized individual or entity. This can become a huge problem for business owners and their employees, leading to expensive as well as missing incomes. Luckily, insurance companies offer business insurance policies that will protect you against the threat of a data breach.
If you already have a business insurance policy, you might want to think about adding data breach coverage to it. You simply never know what is going to happen or how secure you, your employee’s, and your customer’s information really is. By adding data breach coverage to your business insurance policy, you can continue running your business without worrying about its confidential information getting into the wrong hands. In the event of a data breach, your business insurance policy will help pay for any lost money or legal actions that need to be taken.
A data breach can have severe effects on your company’s public image and growth. And the possibility of it happening to your business is now bigger than ever. Losing income is one thing, but losing the trust of your clientele is arguably far worse. In the past, data breaches have caused many big, well-known businesses major financial losses and PR problems.
Target, for example, was the victim of a huge data breach last year. The credit card information of their customers was stolen, resulting in tens of thousands of dollars being lost. Obviously, this resulted in lawsuits, decreased stock value, and a huge negative impact on their public image. Luckily, with data breach coverage, they were able to somewhat weather the storm. This story is a good example of how serious of a threat data breaches are for business owners. Now more than ever, it is critical to take all necessary precautions to make sure you are not in jeopardy of being victimized by entities that want to steal your company’s information.