Cyber Liability Insurance: What you Need to Know
Cyber Liability Insurance,
What you Need to Know
What is Cyber Liability Insurance? Cyber liability insurance financially protects insureds’ exposure to hackers, rogue employees, and accidental release of personal or confidential information.
Who Needs Cyber Liability Insurance? Every business that is responsible for the safekeeping of personal or confidential information of customers or employees.
Why Do They Need Cyber Liability insurance? In the event of a ransomware attack, a proper cyber liability insurance policy can pay for the ransom, loss of income during your business interruption, costs to replace your infected computers and many resulting lawsuits.
Why should they buy a Cyber Liability Insurance Policy? Immediately. Hacks can go undetected for months to years, an Occurrence form, such as a BOP endorsement, will cause coverage confusion and can more likely result in claim denial.
What should a Cyber Liability Insurance Policy cover?
Their Business – 1st Party Coverage
- Business Interruption
- Contingent Business Interruption
- Data Retrieval & System Restoration
- Ransomware & Cyber Crime
- Reputational Loss
- Court Attendance Costs
Their Clients – 3rd Party Coverage
- Privacy Liability & Notification Costs
- Regulatory Fines & Legal Defense
- Breach Management Expenses
- Media Liability
Are these exposures already covered by my other Commercial Insurance policies? General liability & property liability insurance policies focus on physical damage to your property and clients. In many cyber attacks, the physical structure of the computer system is unharmed, however, no longer fully functional. Some policies include coverage for data property; however it does not cover the financial obligations associated with violations of your clients privacy.
Common coverage gaps addressed by a Cyber Liability Insurance Policy
- Technology-related Business Interruption
- Ransomware payment
- Notification costs
- Forensic Investigation
- Defense Costs
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