Cyber liability insurance is a form of insurance that offers protection against financial losses arising from cybercrime. This type of insurance is important for businesses of all sizes, as it helps cover the costs of data breaches, cyber extortion, cyber fraud, and other types of cybercrime.
It can also help cover the costs of restoring damaged data and systems and any legal fees associated with a cybercrime case.
Currently, a significant percentage of commerce is conducted online. Your small brick-and-mortar business likely has electronic data, even if you are not a technology-focused organization. This has enhanced productivity, speed, and convenience but has also introduced cybersecurity risks.
Consequently, every company's best advantage is to examine and enhance its cyber-security best practices and have a comprehensive cybersecurity insurance policy to help manage cyber risk.
What is Cyber Liability Insurance?
Cyber liability business insurance is a policy that protects the organization against data breaches and other cyber security issues.
Typically, a policy will cover monetary losses resulting from data breaches, viruses, hacking, denial of service, cyber extortion, and other cyber catastrophes.
Among these are legal expenses related to civil litigation, regulatory fines and penalties, and necessary forensic examinations.
A cyber liability policy provides coverage in addition to the basics of general liability insurance, which excludes cyber attacks and data breaches.
Who Needs Cyber Liability Insurance?
Cyber insurance has advantages for every business. Businesses that conduct online transactions, which necessitates the upkeep and storage of sensitive data like personal identifiable information, credit card numbers, and contact information, should think about putting a policy in place. A data breach may result in lost sales in the future, irate customers, and other unfavorable effects.
Cyber liability insurance provides an additional layer of protection in the event of a data breach for all businesses that store and manage data online, not only e-commerce businesses.
Consider confidential employee and consumer information. This information is too vital for a company to continue operating without cyber liability insurance.
What Is Covered By Cyber Liability Insurance, and What Is Not?
Determining what cyber security insurance includes and excludes is vital in evaluating cyber liability coverage options.
A cyber liability policy safeguards businesses against claims and liabilities (including income loss, related expenses, and reputational damage) resulting from a data breach, hacking, or cyber attack. Depending on the coverage you choose, cyber liability insurance typically includes the following protections:
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Protection for potentially lost or stolen devices (mobile phones, laptops, tablets)
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Protection if you are compromised or infected with malware
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Legal responsibility for defamatory blog posts
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Data corruption and theft
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Crisis management (public relations assistance, brand-rebuilding efforts)
Choosing the Suitable Cyber Liability Insurance
As with any insurance policy, coverage varies between policies. In addition, cyber liability insurance helps risk management and prevention activities.
The appropriate insurer will assist you in building the greatest possible firewall security, devising social media strategy, obtaining insurance against business interruption, and covering legal fees resulting from court judgments.
Contact an insurance agent to determine if they offer this type of coverage, or consult with insurance companies in Marietta, GA, with expertise in this area.
The importance of safeguarding the information your organization uses and stores and the confidence of your clients cannot be overstated. You might be able to recover from a cyberattack with the help of a tailored cyber liability policy as opposed to losing everything you've worked so hard to build.
Conclusion
Cyber liability insurance is important because it can help protect businesses from the financial damages that can result from a data breach or other cyber incident. This type of insurance can help cover the costs of investigating and responding to a cyber incident, as well as any legal fees and damages that may be awarded in a lawsuit. While no business is 100% safe from a cyber attack, having cyber liability insurance can help reduce the financial risks associated with such an event.
J.F. Shaw Insurance Agency is an independent insurance agency in Marietta, Georgia, offering auto dealers, car, home, church, restaurant, cyber liability, and contractors insurance. Request a quote today!