As the headlines have reflected lately, cyber security is a huge issue for businesses of all sizes. In fact, say the experts, your company will probably be hit with such a breach – and may have been already without your knowledge.
Data security is a daunting task, and will probably become more complex as hackers’ skills evolve. If your company uses electronic equipment to operate, cyber liability insurance should be seriously considered as an element of your security arsenal.
What Cyber Liability Insurance Can Do for You
Cyber liability insurance is a specialized category that covers situations that general policies do not. Cyber insurance can’t keep thieves out of your data, but it can be there for you should you experience a data breach.
Policies differ, depending on your needs and what an insurer offers. Some insurance providers have customized cyber liability insurance according to industry. A retail company has different coverage needs than health care, for instance.
Many cyber liability policies provide both first- and third-party coverage. First-party coverage pertains to a firm’s direct losses. Third-party coverage applies to lawsuits against the company for not safeguarding an individual’s data.
Overall, cyber insurance can cover funds you lose due to a breach, including:
- Lost sales due to business interruption
- Data restoration
- Crisis management
- Customer notification
- Fines, penalties and lawsuits
- Incident investigation
- Reputation/crisis management
With technology becoming more and more embedded into businesses, cyber liability coverage is a can’t-do-without insurance necessity. It’s every bit as important as investing in security controls such as firewalls, anti-malware and antivirus software programs; encrypting data and data backup; and educating employees in proper cyber protocols and practices.