FAQ: What Is New Jersey Cyber Liability Insurance?

What does New Jersey cyber liability insurance cover?

For starters, cyber liability insurance protects businesses that store sensitive information or data electronically, make any kind of transactions through the use of the Internet, and many other scenarios involving computers. We’ll examine some of the main coverages offered by cyber liability insurance.

New Jersey cyber liability policies may provide a combination of the following types of coverage:

• Loss of income: In the event your business’s operations are suspended or limited due to data breach or other cyberattack issues and your business suffers a hit in profits because of it, cyber liability coverage can help replace lost revenue.
• Costs due to damaged reputation: When news of cyber breaches leaks to consumers, businesses almost always take a hard hit at least for a while. Cyber liability insurance may help provide public relations protections for your business to help keep the media as quiet as possible.
• Legal expenses: Should your business end up with a lawsuit if customers sue you after their personal information gets stolen, or even if a bank sues you for having to cancel their customers’ stolen credit card information, coverage can pay for things like attorney, court, and settlement fees.
• Hired professionals: Often businesses have to bring in professional programmers or other computer experts to help them repair the damage to their computer systems including removing malware and patching up other holes in security.

It’s important to mention that cyber liability policies are not standard across the board. So depending on which insurance company you go through, you may be offered different coverage options you can pick and choose from. Cyber liability policies are generally so flexible you can choose your coverage limits and deductible amount as well.

Who needs New Jersey cyber liability insurance?

Really any business owner that uses computers for any aspect of their business needs cyber liability insurance. Not to generalize, but it just is that important nowadays. If you store any type of sensitive information such as medical records or credit card numbers, you’re at risk of that data being stolen and potentially causing major distress to your customers not to mention your business. If credit card data gets stolen, for example, you’re legally obligated to report the breach to the affected banks.

It’s also important to have coverage if your business depends on having a functional electronic operating system. Many businesses operate mainly through use of computers today, and would suffer a major hiccup in operations if their systems were to shut down or be compromised. Cyberattacks can cost businesses hundreds of thousands of dollars in a myriad of different ways so having this kind of protection is crucial to keep up with increasing security demands.