For most businesses, technology is an integral part of their operations. It is often used to process clients’ transactions and communicate or store sensitive information. Although these systems provide convenience, they are also vulnerable to threats from hackers, cyberattacks or data breaches.
Cyber liability insurance can provide essential financial assistance if one of these unfortunate events occurs. The team at U.S. E&O Brokers can help you secure the policy that is right for you. Contact us today for more information.
Why Do I Need Cyber Liability Insurance?
Even with extensive cyber security systems, businesses may still fall victim to cyberattacks or data breaches. For example, hackers may access your hard drive that contains confidential client data, such as their credit card information.
Your other commercial insurance policies may not adequately cover the losses to you or your clients from these events. However, a cyber liability insurance policy may help mitigate these exposures and reduce your business’s out-of-pocket burden.
What Does Cyber Liability Insurance Cover?
Cyber liability insurance policies may offer coverage for events such as:
- System failures
- Data breaches
- Accidental information releases
- Malicious destruction of data
- Lost electronic devices
- Phishing emails
- Malware attacks
These and similar events can impact both your business and your clients. Cyber liability policies may provide financial assistance to:
- Alert affected parties that a data breach occurred. These notifications may be required by law.
- Pay for crediting monitoring for those at risk of identity theft.
- Cover income lost during the interruptions these events cause.
- Pay for cyber-extortion-related expenses.
- Retrieve lost data.
- Repair reputational damage.
- Investigate the cause of the cyberattack.
Additionally, coverage for legal expenses related to third-party lawsuits surrounding a cyberattack or data loss may also be available. This may include payments for defense costs, settlements and judgments. Policies vary, and your agent can provide more details on policy terms, limits and exclusions.
How Much Does Cyber Liability Insurance Cost?
The cost of cyber liability insurance varies based on numerous factors. For example, the amount and type of confidential information you store and the number of clients and employees could impact premiums. Additionally, your claims history and selected coverages could impact the price.
Contact Us for More Information
Cyberattacks are an unfortunate reality for modern businesses. The experienced professionals at U.S. E&O Brokers can help you secure coverage that meets your unique needs. Contact us today for more information or a quote.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.