Cybercrime has become a common occurrence. A data breach can have a tremendous impact on the health and finances of a business. If your company’s data was stolen in a cyber incursion, it can damage its reputation, expose it to liability, and interrupt business operations. Cyber liability insurance allows you to transfer some of that risk to an insurance company.
Cyber attacks are a growing risk for businesses. Common types of cyber threats include:
Cyber liability insurance can vary widely, depending on the specific policy. There is no standard form for this coverage. Each insurer has its own form and its own policy language. However, most cyber liability policies provide two basic types of coverage.
This coverage pays for immediate costs your company incurs as a result of a data breach or cybercrime. This may include costs of:
This coverage helps your company defend against lawsuits and claims by third parties. It covers your attorney fees, court costs, and any damages you are required to pay. Third-party cyber liability coverage helps protect your company against:
In addition to first and third-party liability coverage, some insurers offer risk mitigation services. These services are designed to help your company identify cyber threats in advance, so you can avoid them.
The price of cyber liability insurance can vary dramatically from policy to policy. Factors affecting the cost include:
With the current prevalence of cyberattacks, companies need protection. However, it can be difficult to determine how much coverage you need. Speak with our knowledgeable agent about cyber liability insurance for your business. We can help you find a policy that protects your company from cybercrime at the lowest possible cost.