Every business that relies on…
- Collects/Touches (Sensitive) People Information
- Performs Financial Transactions
Every business is exposed to…
- Social Engineering,
- Data Breach, Hacks
- Fund Transfer Fraud
Unless you block EVERY hacker a 100% at ALL times, you need CYBER INSURANCE to mitigate your financial risks should you face data breach & cyber crime.
Cyber security insurance is like any other type of business liability insurance; it is specifically designed to help your business recover after you and your business experience a damaging cyber attack and/or a data breach. If your business falls victim to a data breach or cyber attack, cyber liability insurance can help it survive. While first-party cyber coverages help protect your company from direct losses resulting from cybercrime, 3rd party cyber liability insurance provides coverage for damages or settlements resulting from covered claims made by third parties against your company and the cost of defending against such claims.
While you may have business insurance or professional liability insurance, most likely, do not have cyber insurance!!!
As of right now, standard general & professional liability insurance policies lack provisions for cyber and data coverage even though most, if not all, business today is done online. General liability (GL) policies lack the flexibility to address new and emerging cyber and data breach perils. Following a cyber attack, as it brings down the system, cyber liability insurance will be necessary to cover the costs associated with the attack as system downtime is not covered by standard business interruption insurance. Cyber insurance can also provide loss profit coverages associated with a systems outage such as computer virus or denial of service attack. Traditional CGL or BOP may not cover this peril that is “non-physical.”
Errors & Omissions along with professional liability insurance cover only the legal costs associated with a lawsuit, including attorney’s fees, court judgments, and, in some cases, settlements. Cyber liability insurance at that point covers the major costs associated with the aftermath of a cyber attack, which may include attorney’s fees, investigation costs, government fines, credit card company penalties, notification costs, consumer credit monitoring services, repairing IT equipment, restoring data, and more. Cyber security insurance policies also cover media liability as well as privacy liability coverages. Media liability cover costs stemming from violations of intellectual property, trademarks, and copyrights, as well as slander and libel. Privacy liability can cover costs associated with missing physical files, lost laptops, or even sending private information to the wrong email address.
If your company suffers a cyber attack or data breach with only E&O or BOP/CGL in place, you will not have coverage for a significant portion of your actual expenses. This is why nearly every business needs cyber insurance to prevent financial ruin after a cyber attack.
Cyber security insurance covers the legal and technological aspects of data breaches & cyber attacks. It covers first-party risks, which are the direct expenses the business incurs reacting to a cyber attack. It also goes further and covers third-party cyber liability risks which can cover expenses for businesses responsible for clients’ online security and data.