As technology advances, more quickly than ever, so do the abilities of hackers to breach our security. The potential liability, lost business, and expenses a business could face after a breach are huge. Over 50% of consumers admitted to considering taking their business elsewhere if a company falls victim to a cyber-hacker. And, 40% of hacked small businesses lost customers and business partners because of the attacks. Ultimately, 1 in 3 small businesses also lost their reputation as well.
Fortunately, our insurance companies are providing coverage for cyber type losses.
Data Compromise Vs. Cyber Liability
Your policy might already afford you coverage in the event of a cyber type attack. However, there is no standard for either Data Compromise or Cyber Liability. Most companies will use their own forms, so it is hard to pin down the exact coverage that will be in your insurance policy. However, we can give you the basics of what these forms typically cover.
Data compromise coverage can help reimburse your company for expenses related to notifying individuals affected by the data breach. Data compromise coverage may also help reimburse your company for the following expenses, up to your policy limits:
Cyber Liability coverage is available in first and third party options. Many policies are modular and can be tailored to fit your needs. Available coverages include Privacy Liability, Professional Liability, Network Security Liability, Media/Website Liability, Notification Expense, Regulatory Proceedings, Brand Protection/PR, Business Interruption, Damage to Systems, Electronic Theft and Cyber Extortion.
As you can see, Cyber Liability includes the coverages that Data Compromise does, but also provides additional coverage.
Managing your Cyber Risk
Many data breaches can be avoided by using good security practices such as:
If you would like us to quote this coverage for you, or would like more information about a specific carrier's form, please Contact Us!