Keeping your company and information secure is a top priority as cyberattacks aren’t going anywhere soon. Whether it be malware, ransomware, phishing, or social engineering, cyberattacks can occur at any time and can lead to huge expenses to resolve. Because of this, many companies are considering Cyber Liability Insurance to help combat this, but what exactly is cyber liability insurance, and what does it cover?
What Can Cyber Liability Insurance Cover?
Cyberattacks can adversely affect many different areas of your business, so policies are typically customizable and incorporate different areas of cybersecurity. Here are some common policies that cyber liability insurance offers:
- Privacy Liability
- Network Security
- Business Network Interruption
- Error & Omissions
Each policy category is designed to cover different areas of cyber security which in turn means that coverage is different for each category. What coverage does each category offer?
Privacy Liability Coverage
Privacy Liability Coverage is meant to protect companies that lose employees’ and customers’ sensitive data in the event of a data breach due to a cyberattack. This policy protects you from incurring any losses due to the exposure of sensitive information because of a data breach. Leaked information that is covered includes things such as Social Security Numbers and credit card numbers.
Network Security Coverage
Network Liability Coverage helps deal with the aftermath expenses of a cyberattack. A bulk of the cost associated with cyberattacks is due to restoration and dealing with the aftermath of the attack. Network Security Coverage will cover costs associated with data restoration, public relations, legal, and more.
Network Interruption Coverage
Another large portion of cost due to cyberattacks and data breaches is the downtime caused to your internal network. Many businesses rely on technology and their network to conduct day to day business, and downtime caused by a cyberattack is costly on its own, and typically results in loss of profit because normal business operations are stopped. Network Interruption Insurance covers these costs and reduces overall disruption to your business due to cyberattacks.
Error & Omissions
Error and Omissions insurance helps protect your business if a customer faces damages and losses due to technology failure from a cyberattack. Examples of this include premature release of your products, negligence, and any other error or omission a customer can attempt to sue you for.
Who’s a Good Fit for Cybersecurity Insurance?
In short, any business can benefit from a cybersecurity insurance policy. Cyberattacks can be targeted at any size business, and typically smaller businesses find it more difficult to recover due to a data breach or cyberattack. Policies can be customized to cover where you have more vulnerabilities and cyber liability insurance can greatly reduce the cost associated with cyberattacks and data loss.
Final Thoughts
Cyber Liability Insurance is becoming more and more valuable as cyberattacks become more frequent and costly. Cybersecurity is constantly evolving, and Cyber Insurance should definitely be considered as part of your strategy and policy. It’s important to note that Cyber Liability Insurance doesn’t cover everything. Things such as cybersecurity oversight, avoidable mistakes, and negligence aren’t covered under cyber liability insurance policies.
If you want to learn more or have cybersecurity questions, be sure to contact us and learn about Rhyme Managed IT and how we handle cybersecurity.
Source: Malwarebytes