Cyber crime represents a significant threat against your organization. In recent years, many employers have become more dependent on technology to conduct daily tasks. At the same time, cyber criminals have increased their activity, expanded their target selection and improved their attack methods. With all this in mind, your organization must take cyber crime seriously and help curb potential losses with adequate cyber liability insurance.
What Is Cyber Liability Insurance?
As its name suggests, cyber liability insurance focuses on providing your company with financial protection related to data breaches or other cyber security incidents. If your organization stores, transmits or otherwise handles sensitive data, such as credit card numbers, banking data or customer information, cyber liability coverage is an essential component of your insurance portfolio. These policies can provide critical financial assistance in response to many cyber incidents.
What Is Covered by Cyber Liability Insurance?
An adequate cyber liability insurance policy may help your business cover various losses and expenses, such as the following:
- Incident response costs—This may include investigating your cyber incident and notifying affected parties, such as customers or partners whose sensitive data may have been compromised.
- Services—Your organization may provide parties affected by a cyber incident with credit and fraud monitoring services.
- Professional help—In the wake of a cyber incident, your business may require the assistance of other professionals, such as digital forensic investigators, IT contractors, crisis management teams and public relations firms.
- Business interruption costs—This coverage can help your organization recoup lost or reduced income if a cyber incident affected its ability to conduct normal operations.
- Cyber extortion expenses—Cyber criminals may use ransomware to lock your systems and even threaten to release sensitive data, but your cyber liability insurance policy can recoup the cost of meeting these demands.
- Legal costs—If your business is fined by regulatory agencies or sued by affected parties, this coverage can help pay for resulting losses and expenses.
Cyber liability insurance generally cannot provide financial assistance for losses and expenses arising from mistakes, oversights, accidents or natural occurrences (e.g., fires, natural disasters, power surges).
Acquire Optimal Coverage
At Podmaska Insurance Agency, we have over 40 years of experience serving individuals, families and businesses in the Providence area. We will work with you to assess your cyber liability insurance needs, explore various options and craft ideal coverage. Visit our website or call 401-272-5444 to get started today.
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.