If you are a cyber consultant, you are probably not planning to deal with a lot of legal battles with your customers. No professional ever plans to be accused of neglecting their professional responsibilities, but it is always wise to prepare for such a situation. Because legal costs are typically very high, your small business could quickly go bankrupt if you were ever accused of negligence in your professional responsibilities or of making errors in your line of work.
While you cannot control whether or not someone will file a lawsuit against you, you can control how you will prepare your company for such a situation. Insurance coverage is of paramount importance when it comes to preparing your company for potential legal battles, and cyber liability insurance for consultants is one of the most important types you can have.
How Cyber Liability Insurance Works
You are undoubtedly familiar with how your general liability insurance policy works, but cyber liability insurance for consultants takes your protection one step further by offering valuable coverage for situations where you are accused of making professional mistakes, including (but not limited to):
- Breach of nondisclosure agreements
- Improper handling and loss of data
- Theft and sale of trade secrets that belong to a client
- Violation of right to privacy
There are many other ways that you can be accused of negligence or professional errors, but cyber liability insurance coverage can help handle the financial costs associated with such accusations.