Cyber Liability Insurance
Cyber Liability Insurance Information
As a business owner, you must account for various risks and exposures, many of which may evolve or change. This may be particularly true when considering the expansion of digital solutions in your workplace. After all, while technological advancements can streamline your operations and offer new opportunities for innovation, they may also exacerbate the danger of data breaches and cyber incidents. Fortunately, cyber liability insurance can provide crucial coverage.
What Is Cyber Liability Insurance?
Also known as commercial cyber liability insurance and cyber insurance, this type of coverage can financially protect your organization from the ramifications of data breaches and cyberattacks. By securing an adequate cyber liability policy, you may retain access to critical funds and resources that can limit out-of-pocket losses and consequences following a cyber incident.
What Does Cyber Liability Insurance Cover?
While the exact details of a cyber liability insurance policy may vary, your coverage can often provide financial security in response to many types of cyber incidents, including malware infections and phishing attacks. When assembling your organization’s policy, consider ensuring that the following features are included:
- First-party cyber liability insurance can financially protect your company from direct losses and costs arising from a cyber incident, such as the following:
- Incident response costs, including investigating the incident, notifying affected parties and paying for various services, such as credit monitoring and IT contractors
- Cyberextortion payments made necessary by a cybercriminal infecting your systems or devices with ransomware and holding your systems hostage or threatening to release sensitive data
- Business interruption expenses, including renting additional equipment and recouping reduced revenue if a cyber incident disrupted or delayed your normal operations
- Third-party cyber liability insurance can provide financial assistance if your organization is sued following a cyber incident, including for the following expenses:
- Legal representation
- Court costs (e.g., expert witness fees)
- Court-ordered judgments
Who Needs Cyber Liability Insurance?
In today’s digital age, most organizations rely on digital and online solutions in some way, meaning that the importance of cyber liability insurance transcends industry lines and other defining characteristics. After all, even small- and medium-sized enterprises have become more frequent targets for cybercriminals in recent years. Businesses that regularly work with particularly sensitive data, such as banking information, social security numbers and health records, should be especially careful to ensure adequate coverage.
Get the Right Coverage
At Dolan Insurance Agency, we are well-equipped to help organizations in the Manchester, Iowa, area address their cyber liability coverage needs. Contact us
today to learn more about your options or to get a personalized cyber insurance quote.