When cyber attacks like data breaches and hacks occur, they can result in devastating damage. Businesses have to deal with business disruptions, lost revenue and litigation. It is important to remember that no organization is immune to the impact of cyber crime. As a result, cyber liability insurance has become an essential component to any risk management program and when coupled with zero trust security your organisation is properly fortified.
What is cybersecurity insurance?
Cybersecurity insurance is a policy that, for a fee, reduces the risks companies face in their online operations, such as data loss or breaches, hacking of companies’ online systems and network damage.
Why is cybersecurity insurance important now?
According to Forbes, a cyberattack occurs every 11 seconds today, and by 2031 this ratio will worsen, reaching one cyberattack every 2 seconds. While not all of these attempts are successful, cyberattacks threaten both tangible and intangible corporate assets, such as reputation, which accounts for more than 50% of the value of the top 25 U.S. companies.
It is possible to cluster the damage of cyberattack on businesses as long term and short term damages. Succesfull cyberattacks causes short term expenses as like investigation, legal, IT remediation costs and long term consequences as like regulatory fines, reputational crisis decrease of revenue etc.
Cyber liability insurance policies are tailored to meet your company’s specific needs and can offer a number of important benefits, including the following:
- Data breach coverage. In the event of a breach, organizations are required by law to notify affected parties. This can add to overall data breach costs, particularly as they relate to security fixes, identity theft protection for those impacted by the breach and protection from possible legal action. Cyber liability policies include coverage for these exposures, thus safeguarding your data from cyber criminals.
- Business interruption loss reimbursement. A cyber attack can lead to an IT failure that disrupts business operations, costing your organization both time and money. Cyber liability policies may cover your loss of income during these interruptions. What’s more, increased costs to your business operations in the aftermath of a cyber attack may also be covered.
- Cyber extortion defense. Ransomware and similar malicious software are designed to steal and withhold key data from organizations until a steep fee is paid. As these types of attacks increase in frequency and severity, it’s critical that organizations seek cyber liability insurance, which can help recoup losses related to cyber extortion.
- Forensic support. Following a cyber attack, your organization will have to investigate to determine the extent of the breach and what led to it. The right policy can reimburse the insured for costs related to forensics and seeking out expert advice. Additionally, some policies can provide 24/7 support from cyber specialists, which is especially useful following a hack or data breach.
- Legal support. In the wake of a cyber incident, businesses often seek legal assistance. This assistance can be costly. Cyber liability insurance can help businesses afford proper legal work following a cyber attack.
- Coverage beyond a general liability policy. General liability policies don’t always protect organizations from losses related to data breaches. What’s more, data is generally worth far more than physical assets, and it’s important to have the right protection in place when you need it most. Supplementing your insurance with cyber coverage can provide you with peace of mind that, in the event of an attack, your organization’s financial and reputational well-being is protected.
Learn more about cyber liability insurance
Cyber exposures aren’t going way and, in fact, continue to escalate. Businesses need to be prepared in the event that a cyber attack strikes. To learn more about cyber liability insurance, contact MountainOne Insurance today.