You can buy insurance coverage for just about anything these days – including identity theft protection for your business.
With business identity theft on the rise, it might seem like buying insurance for it would be a good idea. Here I walk through some frequently asked questions about the burgeoning market for business identity theft insurance.
What is business identity theft insurance?
It’s exactly what it sounds like: An insurance policy you purchase, for your business, to protect it against future losses from identity theft.
What does business identity theft insurance cover?
Say a thief hijacks your business’s identity and racks up $250,000 in on-credit purchases of cell phones. Your business identity theft insurance policy would cover the $250,000 in illicit cell phone purchases, insulating you and your business from having to cough up the money to pay for the phones when the bill becomes due.
That’s the basic gist of any business identity theft insurance plan: It covers the financial losses incurred by the criminals. But some business identity theft insurance plans can offer much more beyond that, including help with monitoring your business or notifying customers of data breaches or even offering identity theft protection benefits for your employees.
The full panoply of service offerings really depends on the insurance company you go with. Shop around and read the fine print.
Who sells business identity theft Insurance?
Before you go out to purchase a new, standalone policy, make sure business identity theft coverage isn’t included in an existing policy you already have.
It’s possible business identity theft losses are already covered in your business’s general insurance plan or could be easily added.
If not, some insurance companies, like Zander Insurance, offer policies.
Is business identity theft insurance worth buying?
It’s certainly worth considering. But before you buy, you’re going to want to carefully research the policy limits and deductible for any plan you’re looking at, as well as whether it covers legal fees, which can be a huge expense associated with business identity theft, but isn’t always included.
You also need to keep in mind that insurance coverage, by its very nature, can’t protect you from some of the repercussions of identity theft. If you become a victim, insurance coverage won’t directly help repair your credit score. Insurance coverage can’t prevent identity thieves from filing fraudulent tax returns in your business’s name. It can’t stop criminals from opening open unauthorized credit card using your business’s identity.
Only diligent monitoring of your business and its information can protect you against those outcomes. Luckily, Company Alarm is here for that.
Company Alarm is dedicated to helping business owners protect what they have worked so hard to build. Our monitoring software is designed to prevent cybercriminals from exploiting loopholes to hijack your company and assets. To sign up for this low-cost, value-added protection, click here.