Cyber Liability Insurance Information
What is cyber liability insurance?
The sensitive customer data stored within company servers and in the cloud is vulnerable to attacks from hackers and other cyber criminals. Most people think only large corporations are in danger of cybercrime attacks. But, all businesses that use computers connected to the Internet are at risk.
Technology allows us to connect in previously unimaginable ways, where we can schedule doctor appointments, order food, shop, pay credit cards, and more with the touch of a finger. Our digital fingerprints are everywhere, and businesses collecting all this personal information need to be aware of the risks they face in doing so.
Businesses are retaining and using an exponentially increasing amount of interconnected data, and they have a public responsibility and legal obligation to keep it secure. Opportunistic and innovative cyber criminals have more access than ever before and legislation, individuals and businesses seem one step behind when it comes to protecting their data.
What data is at risk?
PII - Personally Identifiable Information, social security and driver’s, license numbers, bank account information, online account user names and passwords, medical and health insurance information.
PHI - Protected Health Information, which is information relating to the provision and payment of health care that can be used to identify an individual.
PCI - Payment Card Information, including debit and credit cards.
What are the benefits of cyber liability insurance?
More than one-third of businesses experience a data breach each year. If a similar event happened at your business, would you be able to pay for the resulting damages?
Many cyber liability policies cover a variety of expenses associated with a cyberattack:
- Stolen data retrieval
- Reimbursement of fraudulent charges
- Identity protection services for customers at risk of identity theft
- Damage control for your business’ reputation
- Legal fees associated with the attack
- And other cleanup efforts
A general liability policy often excludes losses incurred because of the Internet. A cyber liability policy can fill in that gap. It may be the difference between closing your business and making a comeback. Coverage features:
Breach Costs Coverage - Covers costs associated with responding to a breach, such as forensic costs to confirm and identify the breach, costs to notify affected individuals, credit protection services including costs to staff a call center for redemption of monitoring offers, and crisis management and public relations costs.
Privacy Protection - Covers costs to defend and resolve claims with regard to the handling of personally identifiable or confidential corporate information. Covers negligence, violation of privacy or consumer protection law, breach of contract and regulatory investigations. Covers issues resulting from the failure of network security, including the negligent transmission of a virus and the inadvertent participation in a DDoS attack against a third party.
Cyber Business Interruption - Covers financial loss, such as business income when a company has its network-dependent revenue interrupted. Traditionally, this has been for fire, flood, etc. but technology growth has created new BI perils (viruses, tech failures, programming errors and computer hacking).
Hacker Damage - Covers costs to recreate or repair damaged or destroyed data, systems or programs. In a digital world, property is no longer exclusively tangible, so specialized coverage is needed to pay for intangible data recovery costs.
Cyber Extortion - Covers the response costs and financial payments associated with network-based ransom demands. With the proliferation of ransomware such as Cryptolocker and anonymous currencies such as Bitcoin, network extortion demands are on the rise. In the digital world, intangible assets are ‘kidnapped’ and extorted with threats to shut down a system or divulge sensitive or proprietary information.
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Pricing depends on the type of business and number of records maintained, but a small business can purchase coverage for as little as $1,250. We can evaluate your business’s needs and find a policy that offers the best possible protection against cybercrime.