Cyber Liability

Cyber Liability Insurance, is a specialized insurance policy that covers a business’s liability in the event of a data breach involving sensitive customer information. This can include data such as Social Security numbers, credit card information, account numbers, driver’s license numbers, and medical records. As cyber threats continue to increase, cyber insurance is a critical tool to protect your business from potentially devastating financial losses.

Why Doesn’t General Liability Insurance Cover Cyber Liability?

Your general liability insurance (GLI) policy typically covers bodily injuries and property damage related to your products, services, or operations. However, GLI does not cover the risks associated with data breaches or cyberattacks. Most general liability policies exclude coverage for cyber liability, making it essential for businesses to secure a dedicated cyber insurance policy. Be sure to review your GLI policy to understand exactly what is covered and identify any gaps in coverage.

What Does Cyber Insurance Cover?

Cyber insurance policies can vary widely, but common coverages typically include:

– Legal fees and expenses related to data breaches.

– Restoring personal identities of affected customers.

– Notifying customers about a data breach.

– Repairing damaged computer systems and networks.

– Recovering compromised data to restore your business operations.

Additional Coverage Details:

Cyber insurance can also cover costs related to business interruption, cyber extortion demands (e.g., ransomware payments), and forensic investigations needed to determine the nature and scope of a breach. These additional coverage features are particularly important as cyber incidents often involve multiple areas of a business and require specialized response efforts.

What to Look for as a Cyber Insurance Buyer

Many well-known insurance companies offer cyber insurance policies. We work with the top carriers in the country to ensure your needs are met. Like any type of business insurance, cyber insurance coverage varies by insurer and policy, so it’s crucial to understand what each policy entails and how it applies to your specific needs.

When evaluating cyber insurance options, here are key factors to consider:

– Deductibles: Compare deductibles closely among insurers, just like you do with health, vehicle, and facility policies.

– Policy Type: Does the insurance company offer stand-alone cyber insurance policies or is the coverage just an extension of an existing policy? Typically, a stand-alone policy is more comprehensive and customizable to your business needs.

– First and Third-Party Coverage: Make sure to determine how coverage and limits apply to both first party (your own losses) and third-party (claims made against you by others) situations. It’s also wise to inquire if third-party service providers are covered under your policy, and whether your vendors have cyber insurance coverage that aligns with your business agreements.

– Coverage Scope: Does the policy cover any cyberattack to which your organization falls victim, or only targeted attacks against your specific organization?

– Non-Malicious Employee Actions: Consider whether the policy includes coverage for errors and omissions (E&O), which can protect against non-malicious actions by employees that result in a data breach.

– Social Engineering and Network Attacks: Does the policy cover social engineering attacks like phishing or spear phishing, in addition to network attacks? Social engineering is a leading cause of data breaches and needs specific coverage.

– Advanced Persistent Threats (APTs): Since APTs can unfold over months or even years, check if your policy includes coverage for incidents that take time to detect and resolve.

– Incident Response and Crisis Management: Look for coverage related to incident response services, which may include forensic investigations, PR management, and customer notification. These are often critical to managing both financial and reputational damage after an incident.

Why Your Business Needs Cyber Insurance

With the growing prevalence of cyber threats, businesses of all sizes are increasingly vulnerable to cyberattacks. The cost of a data breach can be substantial, often including regulatory fines, legal fees, customer restitution, and business disruption costs. Cyber insurance helps businesses mitigate these risks, providing a financial safety net that allows them to recover quickly and minimize damage to their reputation.

Get a Cyber Insurance Quote Today

Protect your business from unexpected data breaches and cyber threats. Our team works with the most reputable carriers in the country to provide tailored cyber insurance coverage to meet your specific needs. If you’re interested in getting a cyber insurance quote or learning more about your options, please give our office a call 210-338-5002 or visit our quotes page today.