Can Cyber Defense Clear Your From Consumer Lawsuits

  • May 28, 2024
  • 2 min read

The importance of cyber security and insurance
Here’s another very good reason to have viable cyber security, cyber defense, or cyber insurance for your business.

Legal Ramifications of a Data Breach
If your business is hacked and you have losses, and your customers’ information is out there, or your vendor information is out there, you could get sued, or you could even be prosecuted as a company for releasing information about your clients.

Safe Harbor Process
Many states are now going through a safe harbor process. If you take certain steps to have cyber security, cyber insurance, or active monitoring or response, you could have a safe harbor to protect you from lawsuits.

Financial Risks of Lawsuits
These lawsuits can get expensive. If you have thousands of customers and they can each sue you for $1,000, that’s a million dollars you could lose. If they could each sue you for $10,000, that’s $10 million you could lose.

Customer Claims and Loss of Business
Once those customer records are out there, every customer that lost their records may have a claim against you for damages. You might lose sales if you’re a repeat business type of organization. If your customers see that you’re the one who got their data released, they might stop buying from you.

Protective Measures
Make sure that you look at the laws in your state and get good legal advice on what steps you can take or what insurance you need to get. You can check our link below for insurance options to see if any of them will help you protect and insulate against lawsuits or reduce the probability you’re going to have one of these claims.

Conclusion
Make sure that you do the right thing to protect yourself not only against the losses but also against future lawsuits that may come up if your data is breached.

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