Cyber Liability Insurance
Cyber liability insurance policy is an insurance policy which covers a business owner against loss or damages from data breach and other cyber activities. Currently, the internet is the biggest marketplace with nonstop activities. For this reason, you need cyber insurance coverage if your business operates online. Cyber liability insurance products include:
Information Security and Privacy Insurance
This is designed to cover your business against financial loss as a result of data breaches. It protects a policyholder against different perils, such as virus, hacker attacks, or denial of service. You can choose the kind of perils most needed by your company. Cyber liability could be first-party coverage, which covers damages to your company. It may also be for third-party coverage, which covers lawsuits against your company if your business is sued by a third for financial loss. The business aspects covered by the product include:
- Loss of income: Meant to provide coverage if you spend extra expenses or lose revenue due to interruption of your computer system.
- Damage to electronic data: Meant to cover loss, damage or theft of data stored on your computer
- Cyber extortion: Some hackers extort money by threatening to interrupt or shut down your system if you don’t pay them a certain amount of money. This coverage pays for the expenses incurred in responding to or paying the extortionists. It must, however, be with the consent of your insurer
- Reputational harm
- Electronic media liability: Provides coverage if your business is sued for copyright or domain name infringement, libel, defamation resulting from any of your online publications
- Errors and omissions liability: Coverage against a third-party lawsuit against flaws or errors from your professional service.
Cyber Security Insurance
Also known as Privacy Notification and Crisis Management Expense Insurance, is a policy which provides coverage for damages to your business. It is designed to address immediate response cost resulting from a data breach. The policy makes a prompt payment on a “no-fault basis” without admitting liability; the aim is to discourage data breach lawsuits from third-party. The following costs are typically covered under it:
- Hiring a forensic expert to help determine the cause of the breach and preventive measures to avoid a reoccurrence
- Paying public relation experts to deal with the crisis
- The cost of setting up a post-breach center
- Notifying those whose personal identifiable information (PII) has been affected by the breach
Technology Errors and Omissions
Tech E&O is mainly for companies who provide technology services or products. It is a crucial coverage for graphic and website designers, digital advertising agencies, software providers and computer manufacturers. It helps cover your client’s financial loss, which occurs as a result of error or omission from the service or product provided by you.
What to Consider When Buying Cyber Insurance
The cyber insurance amount needed by a business will depend on an individual’s needs and budget. The most important factor is your industry. Does your company primarily operate on the internet? Do you use multiple servers? Do you grant data access to many employees? If you answer yes to any of the questions, this means you will be faced with more cyber threats due to the daily high traffic. These are the factors your insurer would consider in setting your premium rate. In this day and age every business with online operations needs cyber insurance.