Cyber Liability
At its core, cyber insurance is designed to protect the information assets a company maintains, the network infrastructure through which you access that information and the implications of a breach of either.
First Party Coverage:
Offers protection for the data you own, sensitive information such as passwords and credit card numbers. It can help reduce the financial impact associated with a data breach or cyberattack and cover the costs for:
Third Party Coverage:
Protection for liability associated with your customer’s data and other things. If one of your clients is hacked and sues your business, third party coverage can help ensure that your business can survive the financial aftereffects of a cyber incident. It can help cover costs for:
- Business interruption
- Cyberextortion threats
- Customer notification
- Credit monitoring services or anti-fraud protection
- Public relations to help restore a business’s reputation
- Investigation into the source of the attack
- Legal Fees
- Settlements in or out of court
- Judgements if you are found liable for a breach
- Fines or penalties related to regulatory proceedings
The primary distinction between first party and third party coverage has to do with who experiences the loss and who it affects - you or your clients.
Top 5 Reasons Your Business Needs Cyber Liability
1. Protect your #1 Asset
Data is one of the most important assets of a
business and often times, it is worth more than physical assets. Standard insurance policies would not cover for damaged, lost or hacked data. Cyber policies would cover data restoration as long as it was within term limits.
2. Downtime will be covered
Data loss recovery and systems restoration
can take up valuable time. If your system’s in the process of restoring, you cannot collect payments taken or enter any new customer data. BI would cover for the loss of profits during this restoration period.
3. Data is not all you can lose
In the event of a data security threat, you run the risk of losing your customer’s trust. The financial ramifications of losing this trust can hurt your business. Cyber insurance would help meet the cost of hiring a PR firm to rebuild your reputation.
4. Another set of eyes
Most small to mid-sized businesses do not have the
luxury of having a data security team that analyze organization risks and susceptibility to digital breaches. Cyber insurers offer that extra layer
of security along with staff training and outside expert consultation as needed.
5. Have you heard of Ransomware?
49% of organizations with at least one significant attack were successfully attacked again within one year.
Every minute
$2.9 Million
is lost to cybercrime
Top companies pay
$25 / 1 Min
due to cybersecurity breaches
Cybercrime is projected to cost the world
$10.5 Trillion
annually by 2025
Malware Increased by:
Ransomware Increased by:
358%
435%
as compared to 2019
Overall