A BOP, or Business Owner Policy, is a type of business insurance plan. It helps to lump together a variety of individual types of coverage together. It’s also very flexible for many policyholders. Though the base policy does not usually automatically include all forms of coverage you need, you can add to it. One of the ways to do that is to add data breach coverage. Should you do so?
Who Should Maintain Data Breach Insurance?
It is important for most companies to consider the value of data breach insurance. It covers incidents in which sensitive information becomes accessible to third parties.
Even large businesses are at risk for this type of loss. Even if you have the most up-to-date security in place, you are at risk for this type of loss. Imagine your customers’ personal data leaking to cyber thieves. What if your company’s proprietary information became accessible? These types of risks are not uncommon. And, they are very costly. Having data breach insurance is essential.
How Does It Protect You?
If you have BOP, be sure you work with your agent to update it to reflect data breach coverage. It is not automatically included in all policies. However, it is very valuable in nearly every business policy. It may help you in a variety of ways.
- It can help you to manage the contacting of your employees or customers if a data exposure occurs.
- It can help you to fix the problem to reduce further risk.
- It may help you with reputation management and damage control. Such an event can become very costly for companies to overcome from a reputational standpoint.
- It may help pay for victims to maintain credit monitoring services to protect their information.
- It can help with other business-related losses caused by the data breach.
How to Add Data Breach Coverage to Your BOP
It is very easy to do this. First, take a look at your existing policy. If you added data breach insurance when you first selected your policy, it may apply. If not, your agent can help you add this protection. It takes just a few minutes to do so. The cost of doing so may be very low, too. Having this level of peace of mind is critical. A data breach can be very expensive and difficult to overcome in any other situation.