The Benefits of Cyber Liability Insurance
Targeted cyber-attacks and data breaches can result in devastating damage. Businesses have to deal with business interruptions, lost revenue, and even litigation. It is important to remember that no organisation is immune to the impact of cybercrime. Because of this, cyber Liability Insurance has become an essential component of any risk management program.
As part of a total risk management solution, a cyber liability policy is customized to a specific company’s needs. Different benefits can be put together to deliver the right level of protection against cyber threats, including:
- Data Breach Coverage
Companies are required by law to report any known data breaches to the affected parties or individuals. A breached company may be responsible for additional costs, like security repairs or enhancements, protection from legal action, or identity theft protection for those hit by the breach.
- Business Interruption Loss Reimbursement
A cyber-attack followed by an IT collapse can result in disruptions to day-to-day operations. Interruptions like these are time and money a business typically didn’t plan to lose. A cyber liability policy may help to protect your business from lost income or increased costs to operations after a cyber-attack.
- Cyber Extortion Defense
A common form of cyber extortion is ransomware. This and other types of malicious software are intended to take and hold a business’s data for a fee. The data is not released until that fee has been paid. With these types of attacks becoming more common, businesses should consider cyber liability coverage as a way to recapture losses from a cyber extortion act.
- Forensic Support
If your business is hit with a data breach or hack, the cause or source of the attack will need to be investigated. Depending on the level of severity and scope of your coverage needs, you can obtain a policy that offers protection for reimbursement of investigation-related expenses, consultation, or even support from experts.
- Legal Support
If a cyber-attack occurs, a business should expect some legal activity. Cyber liability insurance can help a business with the cost of proper legal assistance, advisement, and counsel in the aftermath.
- Coverage Beyond a General Liability Policy
General liability policies typically cover the physical assets of a business and may exclude cyber-related losses. With data becoming more and more valuable every day, it’s important to have the right coverage in place for your business.
In need of cyber liability insurance? Check here.
The use of technology is now a commodity as we do more and more business online. And because of that exposure to cybercrimes will continue to rise. Every business should have a comprehensive assessment if they are prepared in the event of a cyber attack.
Identifying the right kind of cyber insurance requires time and commitment. But once you have a policy in place it should provide enough peace of mind to allow you to focus your efforts elsewhere. Cyber insurance is a passive measure, but cybersecurity must be an active measure.
The single best way to manage the cost of a cyber event is to avoid a cyber event entirely. As expensive and complex as cybersecurity may be, the effort pales in comparison to what it takes to resolve an attack, breach, or mistake.
Your insurer may also mandate that you implement certain levels of protection in order for coverage to apply. In the same way that homeowners are expected to perform certain types of repairs and upkeep in order for their insurance policies to remain valid, companies must maintain certain levels of cybersecurity in order to be eligible for coverage. Be sure to factor in the cost of these requirements when calculating the relative value of a policy.
Remember, also, that user training and education are the least expensive and most effective forms of cyber protection. The vast majority of threats are either invited or enabled by a user within your organization. Making it a priority to alert users to threats, demonstrate best practices, and reward caution and care are more valuable than any other type of protection.
Do you know that you can reduce your cyber liability insurance premium by as much as 25% if proper cybersecurity protocols are in place? Contact Xari Group today.