How Cyber Liability Insurance Can Save Your Business

Matt BauerBusiness Insurance, Cyber Security

Cyber Liability Coverage Can Save Your Business

Each and every business now touches increasingly valuable data from customers, business partners, app or web users and employees. The need for data protection only grows more urgent—and the security measures more complicated—as technology evolves at warp speed. It can be hard to understand, let alone keep up with, the best security measures. Experts in cyber liability insurance can help create a data protection strategy that safeguards your business from catastrophe. You’re at risk, but you don’t have to be.

In honor of National Data Privacy Day, we detail the many ways a cyber liability insurance policy can protect one of your most valuable assets. We also provide some preventative safety steps you can take.

A cyber liability insurance policy covers liability and financial damages of a data breach and other cyberattacks. This may include the stealing of personally identifying data like credit card or Social Security numbers. Notification costs, ongoing credit monitoring and related expenses are covered. The policy also covers liability resulting from website media content, cyber extortion, ransomware, social engineering, computer fraud and funds transfer loss.

Six Steps to Protect Your Business

  1. Identify the data without which your business could not operate, and/or high-value targets for hackers. Create an inventory list of data and any physical assets, including hardware and software, along with details on make, model, serial numbers and operating systems. List company personnel with access to these assets.
  2. Protect assets by regularly or automatically updating software, employing strong passwords, systemizing data backups, avoiding spam and phishing attempts, and limiting data and hardware access to only the necessary number of employees.
  3. Detect incidents by closely monitoring email for phishing attempts or potential viruses. Watch for suspicious activity among employees or customers. Consider a network monitoring service or similar cybersecurity tool.
  4. Prepare to respond to a cybersecurity crisis with a coordinated plan that includes disconnecting and safeguarding hardware, turning to spares or backups, switching to paper and contacting internal IT leadership, law enforcement and legal representation.
  5. Prepare to recover with a similar plan that includes documentation of lessons learned, improvements to policies and procedures, increased internal training and communications, and repair of reputation.
  6. Plan ahead with a robust cyber liability insurance policy, tailored by experts, that will be your safeguard if the above steps fail.

As part of our cyber liability insurance policies, our own experts will identify your potential exposures to attacks, and help explain your legal liabilities and compliance responsibilities.

Our policies offer coverage beyond a general liability policy, and are tailored to your company’s specific needs. We offer benefits like data breach coverage, business interruption loss reimbursement, cyber extortion defense, forensic support and legal support.

We’ve developed a comprehensive Sinclair Cyber Safeguard Solution, and a quick, 90-second video introduces it here, along with more information about our Cyber Liability Insurance.

Want to know more about protecting your business from data breaches? Contact us today.