Although many companies have either error and omissions insurance or cyber insurance, some have both. There are key factors to consider, such as the type of business you operate, as you determine the best option for your organization. For example, errors and omissions will focus on the errors that could harm your clients, but cyber insurance is coverage for breaches that have a direct impact on your company. Continue reading to learn more about each type of insurance, including their similarities and differences.
Coverage
Businesses that make significant mistakes often rely on error and omissions insurance, especially after customers have sued the establishments for losses, even if those setbacks weren’t the companies’ fault. In these instances, you need coverage for legal expenses, managing the claims, and more.
When someone compromises your clients’ stored data, cyber insurance is the best option to have in place. This data includes email addresses, credit card information, names, phone numbers, and other important information about customers, clients, and associates. Cyber insurance can pay for damages from these types of breaches and provide coverage for customer information campaigns and recovery expenses.
E&O vs Cyber Insurance
The type of company you operate will determine the type of insurance you need. For example, independent contractors and small businesses that provide advice to clients are more reliant on errors and omissions insurance. Some of the top professions that are more dependent on errors and omissions coverage include:
- Computer programmers
- Counselors
- Beauticians
- Educators
- Wedding planners
- Graphic designers
- Veterinarians
All businesses that store or process sensitive information should have cyber insurance coverage. If your company sells products online, cyber insurance also applies. Having this type of coverage can protect your organization from cyber and data liability claims.
Combining Coverage
Errors and omissions and cyber insurance are good to have, but some establishments need to combine coverage to ensure they don’t experience extreme financial challenges when being found at fault for mishaps. This is especially true for companies in the fields of real estate, tech, and insurance.
For example, if your company does software development, you’re more at risk for a software glitch that exposes your employees. Being a website designer could also expose the individuals you conduct work for. It’s recommended to have both errors and omissions insurance and cyber coverage for your company to handle potential lawsuits that may arise if your establishment or the individuals you represent or assist are exposed. Doing so helps with data recovery loss and potential lawsuits.
Additional Assistance
Speaking with professionals, such as legal representatives, can help you determine what suits your organization best. However, with the help of trusted professionals who provide IT service, Orange County businesses can develop strategies that protect their data altogether, reducing the risks of breaches and other challenging situations. The objective is to ensure your company remains protected as well as the information belonging to your clients, customers, and associates.
Xonicwave offers the comprehensive cybersecurity services Orange County businesses need to protect their assets and keep their operations running smoothly. Our services include data backup, 24/7 network security monitoring, incident response, penetration testing, security training, dark web monitoring, and more. Our managed cybersecurity solutions, CyberPlus and CyberPremier, address various cybersecurity challenges, including phishing attacks, malware protection, and cloud security. To learn more about how we can help you protect your business from cyberthreats, give us a call today.
