Cyber Liability Insurance helps businesses survive data breaches and cyber attacks by paying for recovery expenses. When cybercriminals infiltrate a network, hold data hostage, or acquire sensitive data, the company they steal from can be held liable for the incident. That's where Cyber Insurance comes in. It can often pay for customer notification, credit monitoring, legal fees, and fines after a business experiences a breach.
Many small-business owners may not think they need Cyber Liability coverage, but small businesses are vulnerable to security threats.
You may want to have this protection if your business handles:
∙ Customer payment, credit, or bank account information
∙ Medical information
∙ Social Security or driver's license numbers
∙ Customer names, email addresses, phone numbers, and addresses
Retailers, healthcare organizations, and financial service providers (like accountants) are especially hot targets for breaches and attacks. But all it takes is one employee mistake, unauthorized access by a former employee or vendor, an unshredded document, a skilled hacker, or a stolen laptop to trigger a breach. It can happen to any business, so cyber insurance is a smart safeguard.
A Key Part Of Your Cyber Security
We’ll protect you from the damage of a cyber attack.
First-Party vs. Third-Party Cyber Liability Insurance
The type of data breach insurance you need depends on the work your business does. Below are key things to keep in mind when considering which type of Cyber Liability Insurance to buy.
First-party response may cover
- Legal and forensic services to determine whether a breach occurred and to assist with regulatory compliance.
- Notification of affected customers and employees, including costs such as letter preparation and mailing.
- Customer credit and fraud monitoring services.
- Crisis management and public relations to educate your customers about the breach and rebuild your company's reputation.
- Good faith advertising.
- Business interruption expenses, such as costs for additional staff, rented or leased equipment, or use of third-party services.
- Cyber extortion reimbursement for credible threats to introduce malicious code, to pharm and phish customer systems, or to corrupt your computer system.
Third-party defense and liability may cover
- Judgments, civil awards, or settlements you're legally obligated to pay after a data breach.
- Electronic media liability, including infringement of copyright, domain name, trade name, service mark, or slogan on an intranet or Internet site.
- Potential coverage for employee privacy liability as well as network security and privacy liability.