Increasing Security Risks and D&O Insurance

Today’s business owner has to consider all of the risks to operating a business. A basic general liability insurance plan is becoming increasingly limited in how much protection it can offer.

Risks are growing for lawsuits, especially those related to data or security breaches. Even with a comprehensive business insurance plan, professionals may still face financial risk. This is why it may be time to invest in a higher level of liability insurance through D&O insurance. D&O coverage helps protect higher level employees, like directors and officers.

Are Business Leaders Responsible for Customer Loss?

Instances of losing employee information due to security risks are on the rise. Various security breaches can cause data theft. Cyber theft occurs.

In these situations, it is sometimes understood that the business is responsible. The business may have failed to provide the right protection for the information of employees or customers. And, this is why having cyber insurance is necessary. However, the question is, are directors and officers within the company also responsible?

Sometimes, directors and officers are responsible for this type of breach. The risk comes from their responsibility to not only put in place methods to prevent ongoing threats to customers but also to ensure the highest level of protection is always in place. If your business has directors and officers, professional liability insurance is necessary.

How Can D&O Insurance Help You?

The use of professional liability insurance, also known as D&O insurance, is one way to reduce the financial risks. It can often protect the company from these types of security risks.

This type of liability insurance may have higher coverage than typical business insurance. This provides the company with higher financial protection than otherwise. It can pay for claims as well as a legal defense if the company or individual faces lawsuits.

It goes without saying that security risks are present in every type of company and at all levels. Companies should reduce their risks through the use of professional liability insurance. If your business has yet to put in place this type of plan, now may be the time to do so. You can often limit costs and legal defense in these types of situations.

Call us at 914.273.8511 for more information on New York professional liability insurance.