The usage of various methods of automated data processing has increased over the years. As digital processing, data storage and other forms of electronic automation have developed, there has been a growth of information that is stored virtually. A great deal of this data is kept online, throughout networks or on the cloud, leading to increased importance in strong cyber security programs. However, should this data become breached by a malicious attacker while processing, much important information stolen can lead to a loss in funds for a business and those involved. This is why automatic data processing insurance is important to have to protect a business should a large amount of data be stolen.
Why Cyber Insurance?
It’s important to note that, in order to cover all areas of a cyber attack, a specialized insurance policy will likely be needed. General liability policies are typically limited to only physical things, while business insurances such as error and omission (E&O) coverage may not handle everything involved in a data breach. Automatic data processing insurance, however, will likely have a focus on covering the costs involved in digital attacks and thefts, including loss funds, paying for investigation and legal fees, covering the costs of notifying anyone involved and other related expenses. When handling so much data at once, it’s necessary to have extra protection in cases where something goes wrong.