Cyber ​​Liability Insurance – Cyber ​​Liability Insurance

As a technology company, we understand the risks associated with data and technology in today’s business environment. Data breaches, network outages, cyber extortion, and other cyber risks are becoming increasingly important for tech and non-tech companies.

Virtually every business today that uses technology or manages digital information is exposed to cyber risk. Cybersecurity is a challenging topic for many. The threat and potential impact of cyberattacks is growing exponentially. In fact, statistics show that 60% of hacked SMBs are closed within six months of a cyberattack.

It’s no surprise that large companies see cyber insurance as an integral part of their risk management program. Well-known companies such as Chipotle, Trump Hotels, Wendy’s and Arby’s have recently faced serious cyberattacks.

We have created this guide to help our readers understand the basics of cyber insurance and other considerations.

What is cyber insurance?

Cyber ​​insurance, also known as “cyber risk insurance” or “cyber liability insurance,” is a financial product that allows businesses to pass on the costs associated with recovering from a cybersecurity breach or similar event. In many cases, policies may also provide access to panels of top rape teachers and other service providers.

The history of cyber insurance

Not surprisingly, cyber insurance has recently entered the insurance world. No other traditional business insurance was created to cover the risks most commonly associated with cyber insurance.

As such, many insurance professionals believe that cyber insurance is still in its infancy and much work needs to be done to standardize coverage and enable insurers to meet the needs of modern business. In addition, education is also important for organizations to understand the threat of cyberattacks and the seriousness of these types of threats.

According to a recent report by Hiscox Insurance Company, 7 out of 10 companies do not have a quality cybersecurity strategy.

However, there is no doubt that the cyber insurance sector will continue to grow rapidly, expanding the offerings and making them more personalized. Like most other types of insurance products, cyber insurance policies are evolving towards more industry-specific solutions and becoming less commonplace.

Who Needs Cyber ​​Insurance?

We strongly encourage all customers to consider the value of cyber insurance, especially when processing or using digital information.

One of the first issues many new cyber insurance buyers deal with is the company’s regulatory or contractual liability with respect to their customers’ personal information. If you store customer information such as names, addresses, credit card information, social security numbers, etc., on any type of online or offline computer system, you are legally obligated to keep that information safe, which costs you more. have to pay. for non-payment.

Many people are surprised to learn the true costs associated with data breaches. According to his Ponemon report in 2017, cyberattacks cost small businesses an average of $2.235 million. Additionally, the survey showed that 60% of his surveyed companies said attacks were getting more serious and sophisticated each year.

Even if your company’s revenue stream has touchpoints with European consumers and businesses, the newly introduced General Data Protection Regulation (GDPR) may apply. Many US-based companies have already taken steps to comply with the GDPR, but that doesn’t mean insurers have followed suit.

What does cyber insurance cover?

Cyber ​​insurance is as dynamic as the companies it protects, so it is far from standardized. However, issues that cyber liability insurance typically covers include:

  • data loss, recovery, recovery
  • Business interruption/loss of revenue due to breach
  • Loss of transferred funds
  • computer scam
  • cyber blackmail

Important note: Insurance against errors and omissions Even if the E&O policy includes a technical error pilot, this is not cyber insurance and is not a substitute for proper cyber insurance.

If a hacker leaks or steals personal information such as social security numbers, driver’s license numbers (in some states), addresses, or bank account information, cyber liability insurance will pay for:

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Professional attorneys specializing in insurance for corporate, corporate, auto, personal and family protection.

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