With businesses of all sizes doing so much online these days, it’s not surprising that new liabilities have been created because of the risks of doing financial dealings, and other types of business, on the Internet. Fortunately, the insurance industry has responded by meeting this risk with insurance that can cover a Data Breach in Honesdale PA. This type of insurance may not seem important at first, but understanding some of the standard repercussions of a data breach may help to bring a new found importance to this type of insurance coverage.
It is estimated that a standard data breach will cost a business around $700,000. This is a significant amount of money, and many small to medium-size businesses don’t have that kind of money simply lying around. Even if they did, they would more than likely rather use it for things other than covering the cost of a data breach. That’s why data breach insurance offered at a website like Nepainsurance.com makes so much sense.
With the danger of hackers so prevalent on the Internet today, even small to medium-size local businesses are at risk of their systems being hacked, and sensitive business or client information being stolen. In these instances, insurance to cover a Data Beach in Honesdale PA does a few things. For the business, this type of insurance helps to repair systems and, in some cases, update security measures to prevent data breaches in the future.
Secondly, if clients have their information stolen, whether that information was used or not, lawsuits can be filed. Many times, these lawsuits are successful. To stop this from happening, data breach insurance can make settlements with other businesses and customers whose information was stolen when the data breach occurred.
This insurance may not seem important to many business owners, but when you consider how much a data breach can cost and that, in some cases, it can cause the business to close its doors for good, this type of insurance is good to have. If you want to know more about this type of insurance, what it provides and how much it costs, you should speak with commercial insurance providers so they can answer any of your questions.
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