As a business owner, it is your responsibility to protect your business from every possible risk exposure. While you may have thought about protection against litigation, employee dishonesty, vandalism, theft, and damage caused from unexpected events, there is more to consider. Your business relies on a network for communications, business-related data and a variety of other important files. It is crucial that you protect your business from possible network failures, outages, and virus activity. Obtaining a business insurance policy that includes network protection will provide you with financial security and peace of mind knowing every aspect of your business is secure.
Types of Business Insurance Network Protection
Business insurance provides a variety of network protection options, in order to provide your business with the highest level of protection and security possible. The following lists the primary ways to protect your network with business insurance.
If there is a network outage, one of the risks you will be forced to contend with is business interruption. The longer the network is out, the longer it will be before you can get back to business as usual. As part of the business insurance policy, business interruption is included for assistance with income and additional expenses. Coverage should include damage to the network, attacks made by hackers, employee or insider attacks, and point-of-service attacks.
Cyber Crimes Coverage
A variety of cyber crimes exist, and unfortunately, can have a negative effect on your business network. Cyber crimes do more than pose a threat to your business; they can have a potentially hazardous effect on the network you conduct business on. If your network becomes involved in a cyber crime, like extortion or terrorism, the business insurance policy can protect this type of event.
Digital Data Protection
Aside from having business interrupted, you can also lose physical data or important information after suffering a network outage. Your business insurance can include digital data protection which offers coverage and helps cover the cost of losing your digital data.
Compliance Cost Coverage
There are state and federal laws that say notification is required if your business network is infected, suffers an outage, or there is a cyber crime involved. This type of notification can be extremely expensive, so it is important to have business insurance that will cover this compliance, called compliance cost coverage.
Lawsuits from Third Parties
Not only can your business be affected by a network outage or network failure, but it can also cause damage to third-party networks. If this happens, you can be sued for the damages and costs of repairing their network. This is why business insurance for network protection should include lawsuits from third parties.
Business owners often get business insurance for a variety of potential risks such as theft, vandalism, business auto, general liability, and errors and omissions. However, they are often surprised to learn that business insurance can actually cover network protection as well. Since the network you’re using for your business contains a variety of important and private data, it’s vital to protect your network with business insurance.