What is Cyber Liability Insurance

As a nation, unfortunately, cybercrimes and data breaches are becoming increasingly common. Like a lot of businesses, every company will send, store, and receive electronic data. A lot of the data will include information that belongs to your business, like tax records and sales projections, etc. It can also include information belonging to customers and employees. In the last recent years, data breaches have resulted in legal fees and major fines. It is not just the larger businesses that can become affected by a virus or being hacked. It has shown in a study that 55% of small businesses have experienced a data breach and 53% have had multiple breaches. Transactions, technology, and social media through the internet play a huge role in a lot of organisations work and how they reach out to their customers. This is a massive gateway for cyber-attacks.

If any of your information is stolen, lost, or compromised by a cyber-attack, your company may be responsible and liable for damages to third parties whose data may have been stolen. As part of your risk management plan, all businesses must purchase Cyber Liability Insurance as a smart precaution and protect your business in any way that you can.

Cyber Liability Insurance 

Cyber Liability Insurance is a product that protects your business liability and individuals from internet data breach risks. It generally covers sensitive customer information such as credit card numbers, social security numbers, account numbers, and driver’s license numbers.

Who needs Cyber Liability Insurance?

Any business of any size should purchase Cyber Insurance. If you rely on Information Technology Infrastructure in your business, then you can become exposed to any risk in the business damage management and repair, income loss, and possibly systems failed due to cybercrimes. If your business holds sensitive customer information details such as names, banking information, process card information, and rely on IT systems, then it is important that you purchase a specialised Cyber Insurance policy.

What is covered by a Cyber Liability Insurance Policy 

This policy covers any financial loss that is related to damage and information loss from your business networks and IT systems. A lot of policies include 1st and 3rd party cover. Insurance cover exists for coverage of both or either type of risks.

Insurance for First-Party covers the following: 

  • Damage or loss to digital assets some of which include software programmes or data
  • Cyber exhortation: this is where a 3rd party may threaten to release data or damage if money is not paid to them
  • Business interruption from network downtime
  • Reputational damage that may arise from a data breach that will result in the loss of customers or property
  • Theft of money or assets through theft of equipment or electronic theft
  • Customer notification expenses when there is a legal requirement to notify them of privacy or security breach

Insurance for Third Party covers the following: 

  • Loss of data to the third party, including a failure of software or systems, and payment of compensation to customers
  • Liability for Multi-Media, defense civil damages and costs that arise from defamation, to cover investigation, privacy breach, and publication negligence in print media or electronic
  • Privacy and security breaches: the investigation, and civil damages and defense costs associated with them

Other Coverage Options 

There are other cover policies available under a cyber liability policy some of which include various crimes such as funds transfer fraud, computer fraud, and cyberterrorism. Various insurance providers can tailor specific policies to specific industries.

Remember Cyber Insurance can’t protect your business from cybercrime, but it can keep your business in a stable position should a security cyber-attack or event occur. Purchase Cyber Insurance today it is the viable and long-term solution for any business.