You never want to face the prospect of a data loss or cybersecurity incident in your agency. But, computers are sensitive and evolving devices. There is always a chance something could happen. When it does, it could put not only the agency’s, but also customers’ security on the line. That’s why you need a cyber liability insurance policy. Here’s a little more information.
It is important that every agency have this coverage. It is there to help you protect your duty to others harmed because of data losses in the business.
What’s Cyber Liability Insurance?
Data is not simply numbers. It has actual value to both you and your customers. So, if something happens to your agency’s data, both the business and third parties stand to lose out. Think about some of the accidents that might trigger such losses.
- A hacker or online pirate might target your computer systems. They could hold data ransom (an ransomware attack) and demand that you turn over money to access the data.
- Your computer system could get a virus. The virus could destroy data or send private information to an outside source.
- An employee might accidentally unleash a cyber-attack when they open a phishing email.
Because of these attacks, both the agency and others could suffer personal or financial losses, including identity theft. Cyber liability insurance can help the agency cover costs of responding to such accidents. You can receive assistance that will help you get the business and its reputation back on track.
The Costs Covered by a Policy
The good news is that cyber liability insurance usually protects both the business’s costs, and the costs of others impacted by data losses. It might help you pay for:
- Data and system restoration following the attacks
- Legal fees resulting from lawsuits levied against the agency
- Damage that a problem in your system causes to another party’s own systems
- The costs resulting from business interruptions brought on by cyber attacks
- Costs related to data extortion or ransomware attacks
- Emergency public relations and notification support for clients
- Identity monitoring for clients whose private data might have become exposed
- Libel, slander or defamation that occurs if your data gets published on the internet
Keep in mind, your agency's data and services might also benefit from coverage like errors & omissions coverage. Of course, the more you do to protect data, the better you’ll be able to prevent cyber and data liabilities in the first place.
Also Read: Password and Other Access Security Tips for Your Office