In the modern business world, nearly everything is done on computers. Files and files of information sit on serves behind firewalls, hoping they won’t be spotted by a hacker, or that the wall will be enough if to block out ever-evolving viruses. If your business stores sensitive information, a breach is even more alarming. Suddenly, all this sensitive information is out to the world and clients turn to your business with pointing fingers. Even insurance agencies themselves are at risk. You want to make sure you’re prepared in an event like this so you aren’t held responsible for a possible breach.
What is Cyber Liability Insurance?
Cyber Liability insurance provides protection to businesses in the event of a cyber attack such as a virus or data breach. This includes replacing lost data and protecting your company from legal action concerning leaked information.
What Does Cyber Liability Cover?
While personal liability and commercial liability often include some cyber liability coverage, cyber liability insurance is a separate piece of the puzzle that shields your company’s assets. It provides coverage for:
- Lost/corrupted data: This insurance helps over the cost of restoring data, software, and more.
- Liability: Cyber liability insurance provides a range of liability protection such as libel and slander and occasionally media liability.
- Identity theft: If a hacker steals one or more of your client’s identities.
- Cyber extortion: The insurance may provide funds in case a cyber thief tries to blackmail you or your company after breaching your data.
- Reputation recovery: After a cyber-attack, it’s expected that your company’s reputation will take a hit. This insurance helps cover the PR costs after the event.
- Business interruption: You can purchase separate business interruption insurance, but it is also included in cyber liability insurance. It covers financial losses caused by a disaster.
These are examples of first party cyber liability coverage. There is also third party coverage, which includes a wider range of liability such as network security and network privacy.
Who Needs Cyber Liability Insurance?
Any business that stores personal information electronically should have cyber liability insurance. In 2019, 95% of records exposed in a breach came from government, retail, and technology industries. Recovering from a data breach in 2020 may cost $150 million or more. Half of these cyber attacks target small businesses.
Some industries most likely to have a data breach are:
- Financial (Banks)
Speak with one of our agents about BIZLock today and make sure your company is protected.
Also Read: Insurance Industry is Getting Phished