No one can deny the countless advantages technology has given businesses across the globe. However, it is also important to remember the risks that technology opens up for businesses. For example, an extremely competent cyber-criminal or distracted employee results in customer or corporate information exposure. In the wrong hands, this information could be abused, leading to ruin for the affected company. Cyber-liability insurance is a vital tool to protect your company from many of these liabilities that technology opens up. Here are five scenarios where cyber-liability insurance could save the day.

Deep Freeze

A deep freeze is not a form of cyberattack, rather a human error committed by an employee. Deep freezes occur when a company’s website or network completely freezes due to a mistake. When a deep freeze occurs, customers will be unable to use the website to complete transactions. As a result, your company’s reputation will suffer, and you will lose tons of revenue in the process.

Large Scale Hack and Data Breach

The skill of hackers should never be understated. A skilled hacker could hack into your company’s network and have access for months. While in your network, the hacker could wreak havoc by stealing customer or employee information, steal trade secrets, or freeze your network, holding it for ransom. Severe breaches like this could lead to class-action lawsuits, significant fines, and irreparable damage to your company’s reputation.

Ransomware Attacks

A ransomware attack occurs when criminal parties gain access to your company’s files and hold them for ransom. Then, they will either threaten to delete them or sell them to competitors or other outside parties. These attacks will inevitably cost your company time and resources.

Remote Thefts

There are numerous scenarios where a remote theft could take place. However, one of the most common is thefts via sales terminals. Thieves will illegally gain access to a store or restaurant’s sales terminal and use them to steal customer information. The affected company then has to go through the embarrassing process of notifying customers of their exposed data.

Privacy Breaches

Privacy breaches are a large category that contains incidents potentially caused by employees or an outside party. However, whatever the cause,  a widespread privacy breach often has severe consequences for the affected company. On top of the damage the breach will cause to their reputation, the potential class-action lawsuits could be devastating.

Protecting your company from the numerous risks in today’s world should always be your top priority. Contact Arthur Blake Insurance in Plano and Dallas, Texas, today to speak to one of your agents about all of our commercial insurance offerings, including cyber-liability insurance.

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