Cyber attacks are here to stay, and companies large and small stand to lose a lot of money if not properly insured against wrongdoing. Whether it’s internal or an attack from outside, tech breaches pose a very real threat and you need to be prepared.
According to the 2015 Cost of Cyber Crime Study by Ponemon Institute, the mean annual loss for the 58 US organizations studied was $15 million per year, a 19% increase in mean value from the prior year. While most of the subjects are multinational, all businesses are vulnerable to cyber attacks or breaches. Tech business insurance can save a company millions of dollars.
Businesses particularly at risk include:
- Internet-based and high-tech companies
- Information Technology (IT)
- Software developers
- Website developers
- Systems analysts and designers
- Companies that rely on technology such as
- Customer email
- Database management
- Company intranet
- Computer networking
What’s Covered by Cyber Liability Insurance?
The purpose of tech insurance is to protect companies from the effects of financial and personal data theft. The threat can come from an external hacker as well as an internal criminal or troublemaker.
Tech liability insurance generally protects for a variety of risks:
- Data breach – Protection following an unintended release of your customers’ private information.
- Data breach prevention – Helps with possible third-party expenses for identification and prevention of breaches.
- Security breach – Coverage for any damages realized by customers due to your company’s network security breakdowns.
- Cyber extortion – Covers the expense of paying extortionists to unlock your data or website.
- Regulatory expense – Helps lower the costs incurred when complying with state and federal breach notification laws.
What Isn’t Covered?
Exclusions include a myriad of hardware and software issues and acts of war. Individual policies should be studied to understand which risks your insurer doesn’t cover.
Bottom line is, if your company is involved in online retail, offline retail, professional services, legal services, distribution, manufacturing or technology, cyber crime insurance can help diminish your risk exposure and protect you against huge cyber-related financial loss.
See what your options are. Review business insurance available to you and compare policies.