Cyber liability insurance has become an essential component to any risk management program. When cyber attacks like data breaches and hacks occur, they can result in devastating damage. Businesses have to deal with business disruptions, lost revenue and litigation. it’s important to remember that no organization is immune to the impact of a cyber crime.
Cyber liability insurance policies are tailored to meet your company’s specific needs and can offer a number of important benefits including these:
Data breach coverage: In the event of a breach, organizations are required to by law to notify the affected parties. This can add to overall data breach costs, particularly as they related to security fixes, identity theft protection for those impacted by the breach and protection from possible legal action. Cyber liability policies include coverage for these exposures, safeguarding your data from cyber criminals.
Business interruption loss reimbursement: A cyber attack can lead to an IT failure that disrupts business operations, costing your organization both time and money. Cyber liability policies may cover your loss of income during these interruptions. In addition, increased costs to your business operations in the aftermath of a cyber attack may also be covered.
Cyber extortion defense: Ransomware and similar malicious software are designed to steal and withhold key data from organization until a steep fee is paid. as these types of attacks increase in frequency and severity, it’s critical that organizations seek cyber liability insurance which can help recoup losses related to cyber extortion.
Forensic Support: Following a cyber attack, your organization will have to investigate to determine the extent of the breach and what lead to it. The right cyber liability policy can reimburse you for the costs related to forensics and seeking out expert advice. Some policies even offer 24/7 support from cyber specialists.
Coverage beyond a general liability policy: General Liability policies don’t always protect organizations from losses related to data breaches. What’s more, data is generally worth far more than physical assets, and it’s important to have the right protection in place when you need it most.
Supplementing your insurance with cyber coverage can provide you with the piece of mind that, in the event of an attack, your organization’s financial well-being and reputation is being protected.