Over the last few weeks, cyber attacks — like hacks and data breaches — have been more prevalent in the news. They can impact day-to-day business with operations interruptions, lost income, and lawsuits. In this age of business and technology, it’s important to remember that no company, large or small, is immune to cyber crime. Consequently, cyber liability insurance has become a standard recommendation for any risk management program.
As part of a total risk management solution, a cyber liability policy is customized to a specific company’s needs. Different benefits can be put together to deliver the right level of protection against cyber threats, including:
Data Breach Coverage
Companies are required by law to report any known data breaches to the affected parties or individuals. A breached company may be responsible for additional costs, like security repairs or enhancements, protection from legal action, or identity theft protection for those hit by the breach.
Business Interruption Loss Reimbursement
A cyber-attack followed by an IT collapse can result in disruptions to day-to-day operations. Interruptions like these are time and money a business typically didn’t plan to lose. A cyber liability policy may help to protect your business from lost income or increased costs to operations after a cyber-attack.
Cyber Extortion Defense
A common form of cyber extortion is ransomware. This and other types of malicious software are intended to take and hold a business’s data for a fee. The data is not released until that fee has been paid. With these types of attacks becoming more common, businesses should consider cyber liability coverage as a way to recapture loses from a cyber extortion act.
If your business is hit with a data breach or hack, the cause or source of the attack will need to be investigated. Depending on the level of severity and scope of your coverage needs, you can obtain a policy that offers protection for reimbursement of investigation-related expenses, consultation, or even support from experts.
If a cyber attack occurs, a business should expect some legal activity. Cyber liability insurance can help a business with the cost of proper legal assistance, advisement, and counsel in the aftermath.
Coverage Beyond a General Liability Policy
General liability policies typically cover the physical assets of a business and may exclude cyber-related losses. With data becoming more and more valuable every day, it’s important to have the right coverage in place for your business.
Designing the Right Solution
Use of technology is now a commodity, and exposure to cyber crimes continue to rise. Every business should consider if they are prepared in the event of a cyber attack. A properly designed cyber liability policy may vary depending on your industry, company size, or operations. Talk to a Brown & Brown advisor today to learn about the right solution for your business.