Cyber liability coverage is a newer line of business insurance which protects against financial damage to a business that results from privacy, security, and operational risks. This is often confused with identity theft protection as an employee benefit but is different in that it provides coverage for the business, not its individual employees.
This coverage does not protect against any bodily harm or property damage claims, nor does it reimburse for future potential losses that may result from the threat. Improvement of internal security systems and loss of value are most often excluded from these policies as well. The areas covered are typically quite extensive, however, and often handle costs you wouldn’t expect, like public relations expertise, legal expenses, IT forensics, and more. Exact coverages vary from plan to plan, which is why it’s essential that you work with a trusted professional when securing your policy.
When a company experiences a data breach, it is often their clients who suffer. It is also a costly legal battle and can cause severe damage to their reputation and the trust the public has placed in them. Cyber liability insurance is how a business can protect themselves – both legally and financially – from lawsuits that may result from a data breach.
Ransomware coverage provides protection against financial losses associated with ransomware attacks. Oftentimes referred to as “cyber-extortion coverage,” this is a particularly important area in which to insure your business, as cybercrime is the fastest-growing white-collar crime in the United States. Including this type of policy in your business insurance package will provide the following benefits if your business is targeted:
You can read more information about management liability, contract bonds, and commercial bonds. Curious about cyber liability insurance cost and benefits? Give us a call at 1-800-356-4282.