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The Cyber Breach Liability Conundrum

October 28th, 2020 by admin

A light blue shield block red skulls representing viruses from reaching the binary behind it

Cybersecurity is a business decision. Just like you would ensure your equipment or buy worker’s comp to protect your employees, cyber liability insurance is a critical piece of your business protection and continuity strategy. Cyber liability insurance is recommended for all businesses today. It helps cover financial losses due to cyberattacks or other tech-related risks, as well as privacy investigations or lawsuits following an attack. For example, if a hacker locks your computers, starts deleting files, and demands a ransom, this insurance can help you respond to the attack and help your business recover lost files and income.

We recently ran a great in-depth webinar on the topic that you should watch!

Cyber Security Liability Webinar

If your business is the victim of a cyberattack, cyber liability insurance can help cover:

  • Legal services to help you meet state and federal regulations
  • Notification expenses to alert affected customers that their personal information was compromised
  • Extortion paid to recover locked files in a ransomware attack
  • Lost income from a network outage
  • Lawsuits related to customer or employee privacy and security
  • Regulatory fines from state and federal agencies

What Is Not Covered By Cyber Liability Insurance and Data Breach Coverage?

It’s important to know these insurance policies don’t cover every type of claim. You may need other types of business insurance to create a comprehensive protection plan, such as:

  • General liability insurance to help cover claims your business caused property damage or bodily injury.
  • Commercial property insurance, which helps protect your business’ owned or rented physical location and equipment.
  • Employment practices liability insurance to help cover employee claims of harassment, discrimination, or wrongful termination.
  • Professional liability insurance, which can help cover claims of mistakes or omissions in your professional business services.

How Much Does Cyber Insurance Cost?

Different factors can impact your business insurance cost. So, your cyber insurance costs will likely be different than another business’. Your data breach or cyber liability cost can depend on your:

  • Number of customers, clients, or patients
  • Type of sensitive data and information you store
  • Revenue
  • Claims history

Many small businesses may only need data breach insurance. You can get data breach coverage by adding it to your Business Owner’s Policy or general liability insurance policy. For larger businesses or small businesses with a lot of sensitive data, you need even more protection than just data breach coverage alone. Have questions? Let us help you explore your cybersecurity posture and answer your questions. We can refer you to our trusted cyber breach liability insurance partner to get a quote. Contact us now.

Posted in: Security, ICX

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