Cyber liability insurance for auto services and dealers

When an automotive business stores customer credit card numbers, or even email addresses, it opens itself to risk. A hacker could illegally access the data and make purchases using someone else's credit card. They could also send phishing emails to your customers in an attempt to get them to reveal financial information.

Data breaches often happen by accident. For example, an employee might leave a laptop containing sensitive data at a coffee shop, or you might use an insecure program with known security vulnerabilities.

In the event of a data breach, your business is responsible for notifying all affected customers and taking on other responsibilities, depending on the data breach laws in your state. The costs of responding to a data breach can add up quickly, which is why you need cyber liability insurance.

There are a couple kinds of cyber insurance, but most auto businesses only need one. Data breach insurance, also called first-party cyber liability insurance, protects against the financial costs of a data breach at your business.

This policy helps pay for:

• Notifying customers whose personal information was exposed
• Credit monitoring services for affected clients
• Cyber extortion demands
• Data breach investigations

When you buy insurance, ask your agent if you can bundle this coverage with general liability insurance. A general liability policy helps cover legal costs related to customer accidents, and bundling policies is a common way to save money on insurance.

Cyber liability insurance helps automotive businesses recover quickly when someone outside your company gains access to sensitive information, or might have gained access.

Here are a few examples of incidents where cyber insurance would cover costs:

• Accidental data breaches
• Ransomware attacks
• Phishing

Accidental data breaches are among the biggest cyber risks for small businesses. Misconfigured software settings can result in vulnerabilities that leave personal information unencrypted, or an employee could misplace a smartphone with sensitive data on it.

When a data breach exposes personal information, cyber liability insurance will help pay for the cost of notifying affected customers and conducting an investigation to find out what caused the breach.

Ransomware is a type of malware that takes your files hostage in return for a ransom. It's a big problem for small businesses, since they typically have weaker security.

If your auto shop is hit with a ransomware attack, your cyber liability policy can help pay the ransom so you can get your data back. It'll also cover the cost of figuring out how the attack happened, so you can prevent future cyberattacks.

Phishing emails sent to employees or customers are a way of tricking people into revealing personal information, such as passwords to online accounts. They often mimic a trusted entity like your business, a manager, or a popular website.

If one of your employees clicks on a link in a phishing email, or downloads an attachment from an unknown source, the security of your system could be compromised. Cyber insurance will help your business pay any resulting costs, but the best method is to educate your employees to prevent these incidents from happening in the first place.

Cyber insurance helps your business recover from a data breach, but that's not the only threat your business faces. Owners of small auto businesses should also consider:

General liability insurance: This policy can pay legal expenses related to customer property damage and injuries, along with advertising injuries such as slander. In particular, you may want garage liability insurance, which extends this coverage to the hazards of a garage.

Business owner’s policy: A BOP combines general liability coverage and commercial property insurance, usually at a lower rate than if the policies were purchased separately.

Commercial auto insurance: A commercial auto policy covers financial losses if your business vehicle is involved in an accident. Each state has its own requirements for auto liability insurance.

Workers’ compensation insurance: Workers’ comp covers medical expenses for work-related injuries and illnesses. It's required in almost every state for automotive businesses with employees.

Commercial umbrella insurance: An umbrella policy boosts the limits on your other liability policies, such as general liability, commercial auto, and employer's liability insurance.

Garage keepers insurance: This policy offers financial protection for business operations that service and store vehicles regularly. It covers your business in the event that a customer’s vehicle is damaged or stolen while in your care.

Are you ready to boost your protection against cyberattacks and data breaches with cyber liability insurance? Complete Insureon’s easy online application today. Once you find the right policy, you can begin coverage in less than 24 hours.