In 2020, it is expected that over 30 million devices will be connected to the internet. As technology becomes increasingly important for successful business operations, cybercrime is one of the fastest growing areas of security concern, and the value of a strong cyber liability insurance policy continues to grow. The continued rise in the amount of information stored and transferred electronically has resulted in a remarkable increase in the potential exposures facing businesses.

Recently, Governor John Bel Edwards declared a state of emergency in response to a statewide cybersecurity risk targeting Louisiana School Districts. The Louisiana Cybersecurity Commission is investigating the breach to identify and remove any malware from the networks affected.

Are you at risk?  

Most liability policies exclude cyber liability or only offer very limited coverage.  With cybercrime on the rise, it is imperative to understand your current exposure and what your liability policy covers. Please download our Cyber Risk Exposure Scorecard to see if your data is at risk of being breached.

Benefits of Cyber Liability Insurance

Clicking on an insecure email attachment, having a laptop stolen, or having your data breached can instantly compromise the personal data of thousands of customers. Protecting your business from cyber-attacks is just as important as some of the more traditional exposures businesses account for in their commercial general liability policies.

Data Breach Coverage

In the event of a breach, organizations could be required by law to notify affected parties. This can add to overall data breach costs, particularly as they relate to security fixes, identity theft protection for those impacted by the breach and protection from possible legal action. Cyber liability policies include coverage for these exposures, thus safeguarding your data from cyber criminals.

Business Interruption Loss Reimbursement

A cyber-attack can lead to an IT failure that disrupts business operations, costing your organization both time and money. Cyber liability policies may cover your loss of income during these interruptions. Increased costs to your business operations in the aftermath of a cyber-attack may also be covered.

Cyber Extortion Defense

Ransomware and similar malicious software are designed to steal and withhold key data from organizations until a steep fee is paid. As these types of attacks increase in frequency and severity, it’s critical that organizations seek cyber liability insurance, which can help recoup losses related to cyber extortion.

Legal and Forensic Support

In the wake of a cyber incident, businesses often seek legal assistance. This assistance can be costly. Cyber liability insurance can help businesses afford proper legal work following a cyber-attack.

Designing the Right Solution

When cyber-attacks occur, they can result in devastating damage such as business disruptions, lost revenue and litigation. It is important to remember that no organization is immune to the impact of cybercrime. As a result, cyber liability (First and Third Party) coverage has become an essential component to any risk management program.

Businesses need to be prepared in the event that a cyber-attack strikes. Brown & Brown has the ability to design a cyber liability policy specifically for your organization and your identified exposures. To learn more about cyber liability insurance, contact us today.