Could your business systems get hacked? Do you know how to negotiate with the hackers? If you don’t then you need Cyber Insurance?
Cyber insurance is a type of insurance coverage designed to protect individuals and businesses from internet-based risks and threats. It typically helps cover expenses related to data breaches, cyberattacks, and other incidents involving sensitive information. This type of insurance can offer financial protection by helping to cover the costs associated with:
- Data Breaches: Expenses related to investigating a breach, notifying affected parties, credit monitoring services, and potential legal fees.
- Cyber Extortion: Coverage for expenses related to ransomware attacks or cyber extortion attempts.
- Business Interruption: Financial losses due to downtime caused by a cyber incident.
- Recovery Costs: Costs associated with restoring or recovering data and systems that were compromised.
- Lawsuits and Legal Fees: Expenses related to lawsuits resulting from a cyber incident, such as legal defense fees and settlement costs.
Cyber insurance policies vary widely based on the insurer and the specific needs of the insured party. The coverage might differ in terms of the types of incidents covered, coverage limits, deductibles, and specific exclusions.
Businesses often consider cyber insurance as part of their risk management strategy to mitigate the potential financial impact of cyber threats. However, it’s important to carefully review and understand the policy terms, as well as take necessary cybersecurity measures, as insurers may require certain security protocols to be in place to maintain coverage.
Cyber insurance enables businesses to transfer the costs associated with recovery from the tangible and intangible losses related to a cyber-related security breach or similar event.
Traditional insurance policies often do not cover these risks and often only accept the transference of known physical risks such as damage to equipment, stock, or locations.
By bridging the gap between physical and digital risks, cyber insurance allows companies to get back online and resume normal business operations faster, minimizing the cost to their recovery.
Contact our office to get a few Cyber Liability Insurance quotes at (702) 541-0882
Here are several different parts of a Cyber liability policy:
Bodily Injury and Property Damage- 1st Party Coverage
A hacker gains access to an industrial control system or Internet-connected device. The attack may come from cyberspace, but the physical impact is real. The cyber insurance company will help you recover, by covering your business interruption losses and extra expenses (including tangible property) to restore your business operations to normal.
Bodily Injury and Property Damage – 3rd Party Coverage
A hacker gains access to an industrial control system or Internet-connected device. the attack may come from cyberspace, but the physical impact is real. The cyber insurance company will cover the costs of defense and any liabilty you incur wen a failure in your security results in physical damage or injury. Sub limits may apply. See your policy for details.
PCI Fines and Assessments Coverage
Your customers credit card information was stolen. Don’t worry. The cyber insurance company will cover any PCI fines or assessments made against you. If you weren’t aware, all businesses that accept or store credit card information are subject to the Payment Card Industry’s Data Security Standards (PCI DSS).
Multimedia Content Liability Coverage
Thanks to the Internet, any company with a public website is subject to the same exposures and litigation of a traditional media company. The cyber insurance company will indemnify you against claims for defamation, invasion of privacy, trademark and copyright infringement, and other multimedia wrongful acts.
Network and Information Security Liability Coverage
An employee loses a laptop with the private data of your customers or a hacker beaches your computer’s defenses and steals your data. These events can trigger mandatory reporting obligations, or worse, resulting in your company being sued. The cyber insurance company will help youresolve these incidents, including hiring legal counsel and covering legal judgements.
Service Fraud Coverage
A hacker gains access to your cloud infrastructure (network, servers, telephony, etc.) and drives up your bill mining for virtual currencies. The cyber insurance company will reimburse you for the loss incurred as a result of these malicious acts. Sub limits may apply. See your policy for details.
Computer Replacement Coverage
A malware infection alters the firmware of your computers. Their integrity may be compromised, but your business won’t be. The cyber insurance company will cover the costs to repair or replace any affected systems. Sub limits may apply; see your policy for details.
Regulatory Defense and Penalties Coverage
Data breaches are damaging enough, but they can also result in state and federal investigations and penalties to your business. The cyber insurance company will cover the costs to manage any investigation as well as any penalties levied against you (subject to applicable laws).
Reputation Repair Coverage
When an incident occurs, it’s often more than just your data that is damaged. In your time of crisis, The cyber insurance company will provide and cover the costs of consultants, public relations, and notification services so that you can control the narrative.
Reputation Repair coverage enhances Crisis Management coverage, with coverage available for advertising, media purchases and consulting costs to help you preserve customer confidence and protect your brand reputation
Funds Transfer Fraud Coverage
A funds transfer request is sent to your controller by someone pretending to be the CEO. The funds may be out the door, but at least you’re not out of pocket–we’ve got you covered. Sub-limit and separate retention may apply; see your policy for details.
Digital Asset Restoration Coverage
Your network is hit by a ransomware attack. Your data may be held hostage, but your business doesn’t have to be. The cyber insurance company will cover the costs to fix the problem and restore data that is corrupted or lost.
Business Interruption & Extra Expenses Coverage
A hacker uses a denial of service attack to take down your website. Your cloud provder goes down as the result of a network outage. The cyber insurance company will not only cover your lost income, but any extra expense to get your business back online.
Cyber Extortion Coverage
A hacker has encrypted all of your files and won’t unlock them until you pay a ransonm. Not to worry, The cyber insurance company will cover the costs to get you up and running again.
Crisis Management and Public Relations Coverage
When an incident occurs, it’s often more than just your data that is damaged. In your time of crisis the costs of consultants, public relations, and notification services so that you can control the narrative.
Breach Response Coverage
Incidents happen. When they do, we’re ready to help you recover and maintain the cofidence of your customers. The cyber insurance company will provide expert counsel, and cover the costs of forensics, notification, and incident response efforts to help make you whole. For limits of 5 million or less, the limit for this coverage is separate from and in addition to the Aggregate Policy Limits of Liability.
Tech E & O Coverage
If a technology product or service that you sell doesn’t work as intended, or worse, results in losses for your customers, you could find yourself at the end of a lawsuit. The cyber insurance company will help you resolve these situations by covering the costs of defense and any legal liability you incur from such an error or omission.
Pollution Coverage
A hacker gains access to an industrial control system or Internet-connected device. A resulting system failure triggers the release of pollutants. The cyber insurance company will cover the costs to defend you and any liability you might have to a 3rd party resulting in the release of pollutants. Sub-limit may apply; see your policy for details