Let's face it, cybersecurity is getting more and more difficult to protect against. Any business that uses technology is at risk of a cyber-attack and the results can truly be catastrophic. Recently the world’s largest meat processor was forced to shut down nine of their operations due to a cyber threat. The attack affected the nation’s meat markets and ultimately raised questions about how vulnerable businesses truly are to cyber threats.
Cyber insurance is essential in helping your company recover after a data breach. Costs can include anything from business disruptions, revenue losses, equipment damage, legal fees, PR expenses, forensic analysis, and any other costs associated with legally mandated notifications.
A benefit of cyber insurance is the role it plays in protecting your company long before a breach occurs.
1. Lost Data
Companies are held responsible for any online data. No matter where it is stored. If it is stored on-site, online, offsite in a warehouse, or with a third party your company can be held liable if any personal or health-related data is exposed.
2. Lost Devices
Now more than ever we are using our devices for work, laptops, mobile devices, etc leave the workplace premises and could be stolen or compromised leaving them vulnerable to hacking and exposing private data.
Forensics teams can determine the extent of a breach and if the customer information may have been compromised. With cyber insurance, your company could be reimbursed for these expenses and could provide coverage for potential business losses.
4. Notification requirements
By law, a company must notify customers of a data breach along with other mandated post-breach responses. For some companies, this can average up to $1.72 Million according to Ponemon Institute.
So who really needs cyber insurance?
Any business that creates, stores, and manages electronic data online such as customer contacts, sales, personal Information, credit card numbers, e-commerce, or any business that stores customer information on a website.
What is covered?
*Depending on the type of policy, you could expect the following expenses to be covered due to physical destruction or theft of information. This could include:
- Meeting extortion demands from a ransom attack
- Notifying customers when a breach has occurred
- Paying legal fees as a result of privacy violations
- Hiring forensics to recover compromised data
- Restoring identities of customers whose data was compromised
- Recovering data that has been altered or stolen
- Repairing or replacing damaged or compromised computer systems
Our team would be happy to walk you through scenarios on what would and would not be covered to make sure you have a full understanding of what cyber
insurance would do for your company.
Cyber insurance with Specialty Risk Insurance can help cover the financial losses aid in the correct procedures and outside resources needed to combat a cybersecurity breach.
*coverage may vary based on the policy selected