Quality coverage includes both first-and third-party financial losses from cyberattacks in various forms.
These days, it’s virtually impossible to fail to understand that a cyber liability insurance policy could benefit any company that does business online to any degree and in any way.
Also known as cyber risk insurance or just cyber insurance, it protects against security breaches.
Headlines announcing various types of hacks, data breaches, ransomware and other cyberattacks have become commonplace. No company, organization or even government is entirely safe from a particularly determined and skilled cybercriminal. That said, these attackers don’t always aim big. More often, they take aim at small and medium sized businesses. For this reason, the right cyber liability insurance policy can offer protection against a security breach or other similar form of unwanted event.
The key component of this type of policy is its network security coverage. This is the protection that becomes active in a network security failure such as malware, ransomware attacks, data breaches, or compromised email accounts. That said, good policies will also offer liability protection and ancillary expenses related to the breach or cyberattack. Moreover, upper-level coverage can also offer quality breach coaches and other service providers.
Every business owner would typically benefit from having cyber liability insurance in place.
A 2017 Ponemon report estimated that a cyberattack to small or medium sized businesses cost an average of $2.235 million per attack. Moreover, that same research also showed that of the businesses that participated in the study, 60 percent said that attacks were increasing in severity and sophistication each year.
It’s easy for a small or medium sized business to obtain a quote from a reputed source such as Embroker to ensure the right coverage fit for the most affordable price. This can provide immediate peace of mind in case the business ever faces the types of risk commonly associated with this type of coverage.
Every policy is different depending on the provider, but small and medium sized businesses should expect their cyber liability insurance to protect them in the following ways:
- Business interruption/loss of revenue resulting from a data breach
- Data loss, recovery and recreation
- Computer fraud
- Loss of transferred funds
- Cyber extortion
In the case that a cybercriminal steals or exposes sensitive personal information, a quality cyber liability insurance policy will also cover:
- Reputational damage
- Credit monitoring
- Notification costs
- Civil damages
- Computer forensics
This coverage will also defend policyholders against liability lawsuits and administrative actions. Moreover, most will also offer resources helping a small or medium sized company to design solid and cost-effective security and data encryption protocol and establish BYOD (bring your own device) procedures.
