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Does your business receive, collect or store PII or PHI? Do you process payments and store credit card information? Do you use computers? If so, you probably need cyber liability insurance. Check out this handy scorecard to see how high your cyber risk might be.
Cybersecurity insurance, also known as cyber liability insurance or cyber risk insurance, helps businesses weather the storm of a future cyber attack. During an attack, hackers may break past your security systems to access and steal vital consumer data, gain access to your system, or lock you out completely and then demand a ransom.
Cybersecurity insurance helps protect against financial losses that result from attacks like those. Some policies also come with a security network that will go on alert when an attack happens.
Even if your company doesn’t do a lot online, hackers can still target your company. Phone numbers, credit card numbers and social security numbers might be stored in your company’s system online or on a computer and can be used by hackers to steal your customers identities.
If your company stores Personal Identifiable Information (PII) or Personal Health Information (PHI), your risk is even higher. PI includes social security numbers, driver’s license numbers, financial or medical records, or criminal history. PHI includes test results, diagnoses, and other private medical information.
Data breaches can happen at any time. If you have some employees working remotely with company computers, anyone with access to that computer could get into your system and cause a data breach. If you have a physical location where members of the public can enter without an ID card, a hacker could gain access to your system from there. If your employees use online systems to make or receive financial transactions, your cyber risks may be greater than you think.
Check out this handy scorecard to see how high your cyber risk might be.
Notifying customers about a data breach
Recovering compromised data and personally identifiable information
Repairing damaged computer systems
Investigation of the incident
Lawsuits related to customer or employee privacy or security
Ransomware attack payments based on coverage limits
Lost income from a network outage
Legal services to help you meet state and federal regulations
Risk assessment of future cyber incidents
Just like arson, an insurance company may deny your claim if it turns out you set your own fire.
In the cyber security world, that means that if there’s a security vulnerability you knew about and did nothing to correct, the insurance company may deny your claim. If your own employees initiated the incident, or if your company was negligent in handling their digital assets, the insurance company may conclude that you are liable for the damages.
Other situations are excluded, too. If you’ve experienced prior breaches, your new policy won’t cover any incident from before the policy was purchased. And your policy won’t cover the expense to improve technology systems, like security hardening.
General liability insurance covers bodily injuries and property damage resulting from your products, services or operations. If a customer ‘s wallet is stolen on your property, general liability will cover the cost of any legal fees.
But if your customer’s identity was stolen because your data was breached, you’ll need specific cyber security insurance to notify them, restore their identities and cover legal fees.
Does your business receive, collect or store PII or PHI? Do you process payments and store credit card information? Do you use computers? If so, you probably need cyber liability insurance. Check out this handy scorecard to see how high your cyber risk might be.
Privacy notification and crisis management coverage deals specifically with first party damage. It deals with the immediate response resources you may need, like hiring a forensics team or setting up a call center to notify customers of the data breach.
Information security and privacy covers the damages resulting from a data breach. It pays the actual liability claims resulting from stolen data. This insurance protects businesses that collect data like credit card numbers, bank account information, trade secrets or intellectual property.
Also known as E&O, Errors and Omissions is a form of coverage that protects businesses from the full cost of defending against a negligence claim made by a client. It also protects against costs associated with technology errors, like bad code that results in customers receiving other people’s information, mail or messages.
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