Your Guide To Cybersecurity Insurance

Your Guide To Cybersecurity Insurance

A cyber attack incident will occur every 11 seconds in 2021… Ensure you’re covered

Cyber attacks are on the rise in 2021.  According to Cybersecurity Ventures, a cyber attack will occur every 11 seconds in 2021, nearly twice the rate in 2019! With that being said, it’s important to ensure your business is covered in case a cyber attack does occur, with cyber liability coverage. Your Guide To Cybersecurity Insurance

Who needs cyber liability insurance?

While some general liability and professional liability policies include some basic cyber liability coverage, some additional coverage may be needed. Businesses that store personally identifiable information (PII) for both employees and customers should have additional coverage. 

Cyber breaches can occur in a multitude of ways. They can be executed through phishing emails, viruses, ransomware, or other malicious attempts to corrupt your data. The best way to begin protecting your data is to establish internal safeguards. This includes strong passwords, monitoring electronic device access, and access to different software tools. 

What exactly does cyber liability insurance cover?

There are a few types of coverage within a cyber liability policy. First-party coverage and third-party coverage to help ensure you’re covered for whatever comes your way.

First-party coverage includes coverage for immediate expenses related to the cyber breach. These expenses typically include:

  • The cost of notifying employees and the public
  • Marketing and public relations response that protect the company’s reputation
  • Extortion money
  • Repairing the damage to software and hardware
  • The cost of business interruption and missed income while operations are suspended
  • Other ancillary costs

On the other hand, third-party coverage helps a company defend against lawsuits and legal claims. There are a few lawsuits that can occur. Privacy lawsuits are covered under this coverage in case you have breached the privacy of customers and employees.

Regulatory body fines are covered, as well as media liability claims (copyright infringement, libel, or slander). Lastly, breach of contract and negligence claims are covered with third-party coverage.

While it’s important to understand what is covered with cyber liability insurance, it’s also important to understand what’s not covered.

It’s important to understand what all of your insurance coverage does not cover. As when you look to ensure you are protected, you can see where your vulnerabilities may lie. Some common exclusions from cyber liability insurance include:

  • Bodily injury and property damage claims: Any claims of bodily injury or property damage will not be included in your cyber liability insurance policy. However, a general liability policy will cover these claims.
  • Criminal activity: Cyber liability insurance policies do not cover fraud, robbery, employee theft, and other crimes. However commercial crime insurance will cover these claims.
  • Social engineering: A cyber liability insurance policy will not cover when employees are tricked into transferring company funds. This can be an additional add-on with some cyber liability plans.
  • Loss of property: When an employee loses a piece of property, like a phone or computer, cyber liability will not cover the cost. However, a commercial property insurance policy will. 

Like many businesses, you likely utilize computers, and other electronic devices to send, receive, and store electronic data. Data is one of your most valuable assets. It’s important to ensure that you protect that data and the cost of losing it when you can. Contact Roger today to see how you can protect your cyber assets today.