What is covered by cyber insurance?
Every 39 seconds, a cyber-attack happens. This comes to about 2,244 times a day. If your business is like most, you probably store most of your data online. If any of this data is lost or stolen, your business could face detrimental consequences.
This is how cyber liability insurance can protect you.
Cyber Liability Insurance can help mitigate the risks and financial losses that come with a cyber breach or similar event.
So, what does Cyber Liability Insurance cover?
There are two kinds of coverages. These include first-party and third-party.
First-party coverage: This covers a company’s own damages from cyber losses.
Third-party coverage: This provides liability coverage for businesses that are responsible for a client’s online security.
Let’s break these down even further…
- First-party coverage examples
Electronic data damage
This will cover the cost of replacing electronic data. This can be any data that is either damaged, destroyed, or even stolen.
Income loss
If your business is forced to shut down due to a cyber crisis, CLI can cover you for any losses of income you may experience during this time.
Cyber extortions
Cyber extortion is when any hacker breaks into your system and damages your data, causes a virus, releases information, or all the above.
Notification costs
When a cyber-attack occurs, any affected parties must be notified. CLI can cover the costs incurred from notifying these parties.
- Third-party coverage examples
Network security and privacy liability
This will cover claims against your business for negligence, unauthorized access, viruses, or other security breach of your computer system.
Electronic media liability
This will cover the cost of lawsuits against you for acts like libel, slander, defamation, copyright infringement, invasion of privacy or domain name infringement.
Regulatory Proceedings
This covers any fines that come with the regulatory agencies in charge of data breaches.
In today’s world, everything is online or in the cloud. To ensure your business and your clients are protected, purchase cyber liability insurance.