What is Cyber Liability Insurance?

Cyber liability insurance is a type of business insurance that protects businesses from financial losses due to cyber incidents. It covers costs associated with data breaches, extortion fraud, as well as other expenses related to the recovery after such an event. Cyber liability policies are tailored to fit your organization’s needs based on its industry, size and location. Some policies may include coverage for third-party lawsuits or regulatory fines that result from a breach, and others might not have this feature at all.

Who Needs Cyber Liability Insurance?

If you’re a business that handles sensitive customer data, relies heavily on technology and computer systems and/or collects or stores confidential information, then cyber liability insurance is a must-have for your business.

The types of businesses that require this coverage include (but not limited to):

• Financial institutions (banks, credit unions)

• Healthcare providers (hospitals and clinics)

• Retailers (online or brick-and-mortar)

• Professional services firms (lawyers and accountants)

What Does Cyber Liability Insurance Cover?

• Legal costs associated with data breaches. If your business is hit with a data breach and you’re sued, cyber liability insurance can help cover the legal fees.
• Regulatory fines and penalties. If your business doesn’t comply with regulations like HIPAA or PCI it could be fined by regulatory agencies like the Department of Health & Human Services or Visa/MasterCard, respectively. These fines can add up quickly, and cyber liability insurance will help pay them off if they happen to you.
• Liability for customer data loss. In addition to covering the costs associated with lawsuits related to stolen data, some policies also include protection against losses incurred by customers who lose money due to fraudulent charges on their accounts after their credit card numbers are stolen from your website or database breach at another company where you store sensitive information about them.
• Expenses related to customer notification and credit monitoring services following a breach: This includes things like sending emails out about what happened so people know what’s going on, creating new passwords for all affected accounts, and offering free identity theft protection services through companies

Why Do Businesses Need Cyber Liability Insurance?

Why do businesses need cyber liability insurance?

There are many reasons why a business should have cyber liability insurance, but the most important one is to protect against financial losses due to cyber incidents. A data breach can cause significant damage to your company’s reputation, as well as its bottom line. It’s also important to note that the costs associated with a data breach may not be immediately apparent. You might not realize how much money was lost until months later when customers start canceling their subscriptions or refusing to buy from you anymore because they don’t trust your service anymore.

Cyber extortion and fraud are another reason why cyber liability insurance is so crucial for businesses today. Hackers often threaten companies with extortion attempts if they don’t pay up in bitcoin (or some other form of cryptocurrency). And even if these threats aren’t carried out successfully by hackers who want money from their victims, there’s still potential for lawsuits from customers who were affected by these attacks, and those lawsuits could cost thousands or even millions of dollars.

What Are the Benefits of Cyber Liability Insurance?

The benefits of cyber liability insurance are many. First and foremost, it provides peace of mind knowing your business is protected. If a cyber incident occurs, you will be able to quickly respond and mitigate the damage by working with your insurer to receive financial protection against the incident. Additionally, if there is a data breach that results in financial losses or other damages, this type of insurance can help cover those costs as well.

What Are the Risks of Not Having Cyber Liability Insurance?

• High costs associated with data breaches. Data breaches can cost your business a lot of money, and not just in terms of the direct costs associated with hiring an IT team or paying for new security measures. There are also indirect costs like loss of customer trust and business reputation damage that can be caused by a breach.
• Loss of customer trust. Customers are more likely than ever before to switch brands if they feel their information has been compromised by a company’s negligence or lack of attention to cybersecurity issues–and they’ll tell others about it too! If you’re not proactive about protecting your customers’ private information, they may choose another provider who takes cyber liability insurance seriously enough to protect them from harm while using your products/services (or even just visiting your website).

How Much Does Cyber Liability Insurance Cost?

The cost of cyber liability insurance varies, depending on the size and scope of your business. It also depends on what kind of industry you’re in and how much risk there is for cyber attacks against your company.

For example, if you run a small pizza shop with no online ordering capabilities, then it’s unlikely that cyber liability insurance would be necessary for you to carry. However, if you run an e-commerce website selling products worldwide and accept payments online through credit cards or PayPal accounts, there is a higher risk in that as well.

How Can Businesses Get Cyber Liability Insurance?

If you’re a business owner, it’s important to know that cyber liability insurance is available. You can get the coverage you need by talking with an insurance agent or broker and asking them what options are available in your area.

Your agent will help you shop around for the best coverage and price on cyber liability insurance. They’ll also compare coverage options and limits so that you can find the right fit for your business needs.

If your business handles sensitive customer data, such as credit card numbers, or relies heavily on technology and computer systems to operate, then cyber liability insurance is essential.

If you’re still not sure whether or not your company needs cyber liability coverage, take a look at the following questions:

• Do you collect or store confidential information?
• Are there any legal requirements for protecting personal information in your industry?

    If the answer to either of these questions is yes, then it’s time to get serious about cyber liability insurance! You can always call our office at 1-877-PLIG-123, or click here should you have any questions.