It’s National Cyber Security Awareness Month. Businesses are under ever-evolving threats of cyberattacks and data breaches. There are a lot of these incidents reported in the news, from large retail stores (Target), restaurants (Panera), credit reporting agencies (Equifax) or popular social networks (Facebook). Many incidents affecting businesses and individuals are not even reported.
How do businesses large, medium and small protect victims of cyberattack targeting valuable intellectual property, customer and employee personal data (such as Social Security and credit card numbers) from exposure? Cyber insurance!
Types of Cyber Insurance
Separate from general liability insurance, it shields your business’ liability for a data breach involving sensitive customer information. It will cover expenses and legal fees stemming from a cyberattack or data breach. There are mechanisms in policies that notify affected customers and help them restore their identities, recover compromised data and repair damaged computer systems.
What is Cyber Insurance?
There are two types of coverage: first-party and third-party. Nearly all businesses need first-party coverage. That covers expenses incurred by the insured including reparations for damaged or lost digital assets, lost business or increased operational costs, cyber extortion and money stolen through an electronic crime.
Third-party coverage is liability protection for damages that companies are legally obligated to pay resulting from the accidental release, unauthorized disclosure, loss, theft or misappropriation of data in the care, custody or control of the insured or a service contractor (subject to policy conditions and exclusions).
What Does it Cost?
Premiums are based on the type of business, and the amount and type of data stored and transmitted. Customized policies fit the needs of a specific business as well. Our risk management experts will work with you to evaluate and analyze your potential exposure and create a policy that fits your company’s budget.