Cyber Insurance helps protect your business from liabilities related to data breaches involving sensitive client information. This can include Social Security numbers, credit card details, account numbers, driver’s license information, and medical records.
Why Isn’t Cyber Liability Covered Under General Liability Insurance?
General Liability Insurance (GLI) typically covers bodily injury and property damage caused by your business operations, products, or services. However, cyber risks are generally excluded from GLI policies. That means cyber incidents like data breaches, hacking, and other digital threats require separate coverage.
What Does Cyber Insurance Usually Cover?
Cyber Insurance policies commonly cover legal fees and expenses related to a data breach, including but not limited to:
- Restoring personal identities of affected clients
- Notifying clients and regulatory bodies about breaches
- Repairing or replacing damaged computer systems
- Recovering compromised or lost data
Coverage details vary by insurer and policy, so it’s important to review terms carefully.
Key Considerations When Choosing Cyber Insurance
When evaluating Cyber Insurance options, consider the following factors:
- Deductibles: Compare deductibles across policies, similar to how you compare those in health, vehicle, or property insurance.
- Policy Type: Determine if the coverage is a standalone Cyber Insurance policy or an add-on to another policy. Standalone policies often provide more tailored protection.
- Customization: Check if the policy can be customized to fit your business’s unique risks and needs.
- Coverage Scope: Understand how the policy applies to both first-party (your business) and third-party (clients, vendors) claims. Verify if coverage extends to third-party service providers.
- Types of Attacks Covered: Confirm whether the policy covers all types of cyberattacks or only those specifically targeting your organization.
- Employee Actions: Clarify if the policy covers non-malicious actions by employees, which can be part of Errors & Omissions (E&O) coverage related to cyber incidents.
- Social Engineering: Verify coverage for social engineering attacks such as phishing, spear phishing, and advanced persistent threats (APTs).
- Time Frames for Coverage: Since some attacks, like APTs, can occur over extended periods, check if the policy defines applicable time frames for coverage.
Working With Trusted Cyber Insurance Providers
We collaborate with leading insurers nationwide to help you find Cyber Insurance policies that align with your business’s needs. Our goal is to assist you in understanding your options and making informed decisions.
Ready to Explore Cyber Insurance Options?
If you're interested in Cyber Insurance coverage for your business, please give our office a call or visit our proposals page today.