Cyber attacks such as Data Breaches and Hacks occur. More than 80% of US companies report being hacked at one point. These attacks can cause devastating damage. Companies suffer business disruption, lost revenue and litigation. It is important to realize that no organization is immune to cyber crime.
Even if you are confident in your cyber security, you could still be held liable for a cyber breach that occurs to one of your service providers. Many companies use service providers that must have access to sensitive data to carry out their work. When their systems are not secure and your data is exposed in their data breaches, you may be liable. These services range from Payroll Processors, to Online Storage, and regardless of any contractual terms, it can be difficult to shift liability away from your company.
Cyber Liability Insurance policies can be tailored to meet your company’s specific needs and offer important benefits, including the following:
Data Breach Coverage: In the event your company suffers a data breach, you are, by law, required to notify affected parties. Notices need to be drafted by appropriately qualified lawyers, printed and sent out by physical mail. Expensive computer forensics are generally required to identify the source and nature of the loss. Affected individuals often demand credit monitoring services or an equivalent in order to minimize the risk of identity theft. The costs can add up quickly. Cyber Liability Insurance can help mitigate these losses.
Business Interruption Loss Reimbursement: Cyber attacks can cause an IT failure that disrupts your business operations, from computer viruses to Credit processors going offline, these disruptions can cost your organization both money and time. Cyber Liability Insurance may cover loss of income, plus increased costs to business operations may also be covered.
Cyber Extortion Defense: Ransomware and other malicious software are designed to steal data, or access, from organizations and then ransom it back fro a steep fee. There attacks involve the theft of key data, but they can also involve taking over your company website. Cyber Liability Insurance can help recoup these losses.
Forensic Support: Some Cyber Liability Insurance policies offer 24/7 support from cyber specialists which help you investigate the extent of a breach after an attack, many will also reimburse the insured for the cost of these services.
Legal Support: Legal assistance can be costly, but in the wake of a cyber breach many businesses see no other option than to seek legal support. Cyber Liability Insurance can help you afford the proper legal work you require after a cyber attack.
Cyber Liability Insurance goes beyond General Liability which often covers only physical assets. What’s more, data typically is valued far higher than any physical object. Supplementing your coverage with Cyber Liability Insurance gives you confidence that your company’s reputation and financial well being are protected.
Contact one of our expert Agents today to find out what coverage is right for your cyber needs.
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