Insurance in a Digital Age: All About Cyber Protection
You’ve probably heard or even exclaimed, “what a small world!” Here’s another one for you, “what a global world.” Technology has granted us so much convenience and connection. It’s at our fingertips, and stretches far beyond our doorsteps. Business, socialization, and international awareness knows no geographical boundaries, and if we’ve learned anything from this past year and a half, it can be done remotely with the help of technology.
Just as human communication has dramatically evolved, so has insurance. Why? Because different risks surface with the innovation and growth of societies. In other words, the insurance industry should never be stagnant. So, it’s no surprise that the realistic risks involved in a techy world are tech savvy criminals behind screens. Which is why Cyber Liability is now a critical part of risk evaluation and commonly found in insurance policies.
Here’s what you should be aware of as you decide if Cyber Liability is right for you and/or your business:
What is Cyber Liability? This is a specific coverage that can be added to a personal and/or business insurance policy that financially supports the expenses associated with a virtual security breach. Legal defense costs can easily exceed $250,000 and a breach can happen to the most careful. If it does, you should be confident that an insurance agency has your back.
Who Needs Cyber Liability?This is most commonly found in a commercial policy, as businesses (of any size) deal with confidential information on a daily basis. However, depending on your lifestyle, you may need this added to your personal policies as well. Personal Identity Theft coverage may also make sense in some cases. In general, you are wise to have Cyber Liability if…
You own a business, large or small.
You participate on a Board of Directors.
You are in a senior leadership position at work.
You exchange large amounts of money.
What are the Specifics of Business Cyber Liability?Always remember commercial insurance is complex, and your policies are unique to you. In general, a thorough Cyber policy can include:
Privacy Injury Liability – In case your customers or vendors are impacted by a cyber breach. Many policies also include costs for mandatory notification in the event of a breach, as well as defense and losses.
Network Coverage – This is a 1st party coverage that can support network restoration costs in the event that a hacker takes your network down for an extended period.
Subsequent business income –This is another 1st party coverage that can offset lost income resulting from your network being down after a cyber incident.
We understand it can feel a little daunting. However, we will always prioritize your success and the health of your business. In today’s global world that means Cyber Liability Insurance is a key to keeping you protected.