Q: How can data breach insurance help my store?
A: Verizon's 2015 Data Breach Investigations Report found that 31 percent of hacks target POS systems, while another one-third come from denial-of-service attacks which can compromise online stores. What does that mean? Retailers are a prime target for data breaches.
If your point-of-sale system or online store is hacked and your customers' data is stolen, your business's reputation and budget could take a huge hit. You'd have to pay out of pocket for IT repairs and services that will protect your customers from identity theft.
Cyber Liability Insurance / Data Breach Insurance may offer financial protection for retailers by paying to "clean up" a data breach and covering the following costs:
- Credit monitoring services.
- PR and crisis management assistance.
- IT patching and repairs.
As we've seen with other major retailers, data breaches can be extremely costly. While Cyber Liability Insurance won't prevent a data breach, it may help you cover the tremendous costs that come when your credit card or online payment system has been hacked.