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What You Need to Know About Cyber Liability Insurance
You don’t need to be a computer genius to see that cyber attacks are increasing. Anyone who pays attention to the news has heard about the numerous high-profile hacks that have compromised the personal data of millions of American consumers, leaving them vulnerable to identity theft, mortgage fraud, and other cybercrimes.
According to the most recent Internet Security Threat Report by Symantec, data breaches exposed over 552 million identities last year.
Protect Your Business
A critical component of combating the risks posed by cybercrime and unintentional data breaches is purchasing a cyber liability insurance policy with Whims Insurance & Financial Services. Cyber liability coverage isn’t new, but the need for it is increasing as cybercrime rates rise.
Many business owners don’t realize that cyber insurance often needs to be purchased as its own policy. As you begin looking into this crucial insurance for your company, it’s important to note that pricing and coverage will depend largely on the details of your business, data, security measures, and online presence.
Whims Insurance & Financial Services works with technology companies at all stages, and our practice leaders understand the intricate, emerging products and exposures tech firms face. As a critical partner for technology clients, we provide solutions for a wide range of risks, including specific needs such as professional liability and exposure to business interruption resulting from international manufacturing operations.
A cyber liability insurance policy generally covers the following:
Coverage for actual costs associated with a data breach is classified under Breach Response and Remediation Expenses and includes forensics, crisis management legal expenses to determine legal duties and notification laws, etc.
Liability for security/privacy breaches protects against lawsuits and other actions resulting from the exposure of confidential customer information.
Asset recovery and restoration covers the costs to restore, update, and/or replace hardware, software, or data assets damaged as a result of cybercrime or an unintentional loss or release of data.
Business interruption costs provides coverage if you suffer a loss of revenue or an extra expense due to a system interruption or outage caused by a breach.
Reputation loss expense covers your business’s lost income due to adverse communication specifically arising from an actual or alleged breach that threatens or negatively harms the insured's reputation.
Some policies also cover additional items, such as cyber extortion, cyber terrorism, and the cost of regulatory penalties or sanctions that may result from a breach of data.
If you think your existing business liability policy will protect your company in the event of a data breach, you’ll want to think again. Many business policies specifically exclude this type of risk because of the extreme variability between different companies’ risks and assets.
If you’re not sure whether you’re covered, schedule an appointment to talk to your cyber insurance advisor at Whims Insurance & Financial Services. It’s vital you are protected in the likely case of your company suffering a data breach.