is Cyber Liability Insurance right for you?

Due to Coronavirus, many of us have been working remotely and starting businesses to support ourselves and community. Conducting business online allows for companies to pivot and create more opportunities to succeed.

On the other hand, this means many cyber criminals have found an opportunity to target vulnerable businesses and their customers. That’s why, today, we are talking about CYBER LIABILITY INSURANCE.

What is Cyber Liability Insurance?

Every company holds some type of risk of cyber breach. Cyber Liability Insurance protects your businesses from financial losses as a result from a malware attack.

When a cyber attack occurs, companies may face legal fees and costs to recover data.

Does my business need coverage?

Cyber Liability is for businesses that hold personal, identifiable information on clients and employees. In 2021, any business is at risk of some sort of cyber breach. Here are a few types of businesses who may need it most:

  • Contractors

  • Financial Institutions

  • Barber shops and Salons

  • Restaurants

  • Real-estate Agents

  • Marketing Companies

What does Cyber Liability Insurance cover?

First- Party Coverage

  • Loss or damage due to electrical data

  • Loss of income and extra expenses

  • Cyber Extortion - When a hacker threatens to use your data for malicious acts unless you pay a certain amount of money.

  • Cost of notifying customers

  • Damage to reputation

Third-Party Coverages

Covers damages or settlements that are a result of a covered claim.

  • Network security and privacy liability

  • Electronic media liability

  • Regulatory proceedings

What is not covered?

  • Potential future lost profits

  • Loss of value to the business

  • Improvements to internal systems and hardware

  • Bodily injury or property damage

  • Property loss (typically covered by a commercial property policy)

How can I avoid a cyber claim?

90% of cyber breaches occur from human error. The best advice we can give you, is to train yourself and your team in addition to properly securing your software.

Check out this video for a few tips:


Sources:

https://www.thebalancesmb.com/what-s-covered-under-a-cyber-liability-policy-462459

https://woodruffsawyer.com/cyber-liability/cyber-101-liability-insurance-2021/#:~:text=Cyber%20Insurance%3A%20What's%20Typically%20Not%20Covered&text=Cyber%20insurance%20policies%20generally%20do,upgrades%20after%20a%20cyber%20event

https://www.fundera.com/blog/cyber-liability-insurance

Kristin Swansoncyber liability, cyber coverage