Cyber Insurance Coverage Overview
Cyber Insurance Coverage Overview
Data breaches have become increasingly common. While the news focuses on major corporations having been infected with ransomware or having had a data breach, small and medium-sized businesses are also targeted and are extremely vulnerable. Many business owners have a false sense of security, thinking that only large companies will be a target for cybercrime. However, because small and medium-sized businesses often don’t have the IT staff and resources of a larger corporation, they are more vulnerable to a cyber attack.
What does Cyber Liability Insurance Cover?
Cyber Liability Insurance helps protect your business from the costs associated with a data breach or a Cyber Liability event. Coverage can be for both first-party and third-party costs.
First-Party Coverage includes expenses incurred by a company when a breach occurs and can include:
– Forensic Investigation into the network/systems to determine the scope of the breach
– Repairs to hardware and software, including data restoration
– Employee and public notifications
– Ransomware extortion costs
– Business interruption
– Reputation Repair and Public Relations
– Credit monitoring costs
Third-Party coverage includes legal costs and lawsuit defense including:
– Negligence or breach of contract claims
– Regulatory fines
– Media Liability claims
– Privacy lawsuits
Many policies include loss mitigation services. These are services that help protect your business from cyber claims before they happen, such as help with network security, consultation on potential security events, and employee training to avoid phishing and social engineering.
What Data is at Risk?
Cybercriminals are looking for any personal information such as emails, passwords, birth dates, Banking Information, etc. The following categories are what cybercriminals target:
– Payment Card / Banking
– Personally Identifiable Information (Drivers License, Social Security Number, Name, Phone Number, Address, Birthday, etc)
– Health Information
Weak network security, poor password management, malware and viruses, phishing, and social engineering all contribute to the frequency and ease of having a cyber attack. Stolen data often ends up online, being sold for profit.
Who Needs Cyber Liability Insurance?
Any company that has Protected Health Information, Personally Identifiable Information or payment information should have Cyber Insurance. Cyber attacks are very costly, averaging upwards of $3,000,000, and without insurance, many small businesses end up out of business because they cannot afford the costs associated with a breach. With Cyber Liability, your business can be protected from the high costs, allowing you to stay open.
There are different types of insurance. Many package policies will include some Data Breach or Cyber Liability via endorsement to their policies. Larger companies or those handling sensitive information and payment information should consider a more comprehensive stand-alone Cyber Liability policy. Coverage can be tailored to your business type and exposure.
At Fixated Financial and Insurance Solutions, we work with several carriers that provide this vital coverage. Our carriers specialize in Cyber, so your business has the peace of mind to know that you have protection and that your insurance policy is tailored to you, covering what you need the most.