Cyber Insurance helps cover your business’s liability for a data breach that includes sensitive client information. This could include Social Security numbers, credit card numbers, account numbers, driver’s licenses, and even medical records.
Cyber insurance coverage can provide a team of cyber experts the ability to respond quickly to a data breach, including forensic experts, attorneys, breach response specialists, and credit monitoring companies.
Cyber insurance is an inexpensive way to protect the corporate balance sheet from losses not typically covered under traditional insurance policies. In addition to first-party costs like forensic investigation and notification, cyber insurance also extends to third-party claims alleging unauthorized disclosure of personal information or other confidential data.
Why Do Hackers Target Small Businesses?
Hackers target small businesses because they are perceived as having fewer cyber security defenses and can easily be hacked. Cyber security requires a financial investment, and for many small business owners, the threat doesn’t appear real since only the big companies make headlines.
Many small business owners misconception is that their data is not valuable. Over half of all cyberattacks are directed at small businesses, and with the number of employees working remotely, this number continues to rise.
Does General Liability Insurance Cover Cyber Liability?
General Liability Insurance (GLI) covers bodily injuries and damage to property resulting from your products, services, or operations. Be sure to check your policy because cyber liability coverage is usually not included in your General Liability policy.
What Does Cyber Insurance Cover?
Depending on the coverage form, typical items can include:
- Legal fees and expenses
- Restoring the personal identities of affected clients
- Notifying clients about a data breach
- Repairing damaged computer systems
- Recovering compromised data
When Comparing Policies, Ask The Following Questions:
- What are the deductibles? Be sure to compare deductibles closely among insurers, just like you do with health, vehicle, and facility policies.
- Does the insurance company offer one or more Cyber Liability Insurance policies, or is the coverage simply an extension to an existing policy? In most cases, a stand-alone policy is best and more comprehensive.
- How do coverage and limits apply to both first and third-parties? For example, does the policy cover third-party service providers? On that note, find out if your service providers have Cyber Insurance and how it affects your agreement.
- Does the policy cover any attack on which an organization falls victim or only targeted attacks against that organization in particular?
- Does the policy cover non-malicious actions taken by an employee? This is part of the E&O coverage that applies to Cyber.
- Does the policy cover social engineering as well as network attacks? Social engineering plays a role in all kinds of attacks, including phishing, spear-phishing, and advanced persistent threats (APTs).
- Because APTs take place over time, which can be months to years, does the policy include time frames for coverage?