Businesses strive to do all they can to prevent data loss due to infrastructure issues and security breaches. Nevertheless, theres always the possibility that it could happen, incidents with hackers targeting Yahoo, Experian and Target have proven. Even smaller firms can suffer major losses, so its wise to include big data insurance as part of your risk management strategies.
The Basics on Big Data Insurance
Otherwise known as cyber liability insurance, big data policies are usually separated into two categories:
- First-party coverage, which compensates insured parties financial to help address immediate business needs
- Third-party defense and liability, which handles claims stemming from litigation brought against companies due to data breaches
First-party covered losses usually include costs for forensic investigations, notifying affected parties, credit monitoring, public relations and business interruptions. Third-party policies generally address expenses incurred from litigation or from losses due to trademark and copyright infringements.
Prevent Major Losses
U.S. News and World Report revealed in 2014 that hackers costs companies an average of over $400 billion each year. Without big data insurance, you could be paying huge sums out of your own pocket to deal with damages and litigation expenses. Investing in cyber liability coverage now will save you time and money should you become the target of a hacker or lose data due to power outages, hard drive issues or other causes.