Cyber Liability Insurance
Cyber Liability Insurance Information
In an increasingly digital world, businesses of all sizes should strongly consider cyber liability insurance as a necessary component of an adequate insurance portfolio. Technology is generally beneficial for the modern workplace, but as more data storage and regular operations move into a virtual environment, your organization’s ability to respond to and manage a cyber incident must be a top priority.
What Is Cyber Liability Insurance?
Cyber attacks can have many financial, operational and reputational consequences. Furthermore, without sufficient coverage, the out-of-pocket costs associated with responding to and recovering from an incident could be devastating. In the aftermath of a data breach or other cyber incident, the resources and assistance provided by a cyber liability insurance policy are invaluable.
What Does Cyber Liability Insurance Cover?
Cyber liability insurance policies may vary in the protection they can offer policyholders. In many cases, these policies can be classified into one of the following two categories:
First-party cyber liability insurance, also known as data breach insurance, provides financial assistance for losses arising from a cyber incident directly affecting your organization. This may include the following:
- Ransomware payments—If your company’s devices or networks become infected with ransomware, cyber criminals may make your data inaccessible until payment is provided. They may also extort your business further by threatening to release sensitive information.
- Business interruption expenses—In the wake of a cyber incident, your organization’s regular operations may be disrupted. Your insurance can provide financial assistance for various costs and losses, including hiring additional staff, renting equipment and recouping lost income.
- Breach response costs—In most cases, businesses that suffer a data breach are legally required to study the incident, including investigating the breach, notifying affected parties and hiring consumer credit and fraud monitoring services.
Third-party cyber liability insurance focuses on financially protecting your business if lawsuits arise after a cyber attack. Following an incident, affected parties may sue your company for failing to prevent it. This coverage may provide financial aid for the following:
It may also be possible to bundle first- and third-party cyber liability coverage with general liability insurance and professional liability insurance, respectively. Our qualified cyber liability experts can help determine the best fit for your business.
How Much Does Cyber Liability Insurance Cost?
Your organization's specific details and operations must be considered before insurance companies can provide you with an accurate quote for cyber liability insurance. In most cases, the following criteria will be considered:
- Existing cybersecurity controls
- Details of data storage (e.g., amount, level of sensitivity
Get the Right Coverage
Workplace technology has changed the way modern businesses operate. Tasks and responsibilities that may have previously been tedious and time-consuming can now be performed automatically by software and applications. Technological solutions may also be primarily responsible for the increased popularity of remote work. However, while these changes may have benefits, they also carry significant risks and exposures that could lead to major financial losses.
Fortunately, the agents at Commercial Coverage Inc. are prepared to help your business protect itself from the potential high costs associated with cyber incidents. We will work with you to assess your insurance needs and address them with an optimal cyber liability policy. Contact us today to get started.