The 411 on Cyber Liability Insurance

Posted on in Cybersecurity

You have it on your car, your house, your office building and hopefully, even your life. But do you have coverage in the cyber world? The cost of not doing so can be detrimental to an organization. Unfortunately, the number of incidents requiring cyber liability insurance steadily increases each year. The need to protect yourself financially from online organizational threats is still somewhat of a new concept. To get up to speed, here is what you need to know about cyber liability insurance.

Do I really need more insurance?

Any company that utilizes technology is at risk of a security breach. From retail to grocery stores and small to big businesses, they all have or should have protection for the “what if.” Due to the value of the data and the cost of recovery, healthcare data breaches are the most expensive.

Your company has hopefully already invested in security protective measures such as security audits and employee training, but these measures cannot guarantee 100% protection. The average cost to recover a single record is $363, so in the event of a breach, can you afford to not mitigate the risk with insurance?

What is it?

Cyber liability insurance or cyber risk insurance helps to mitigate risks resulting from a security breach. This can happen when patient data is stolen, held for ransom or misused from accidental exposure. Its purpose is to cover the losses as a result of a major or minor breach.

Because the damage caused by a breach is unique from physical injury or property damage, a different policy is needed.

What does it cover?

Cyber insurance is going to vary from carrier to carrier, but will generally recover damages occurred by an insurable loss such as theft, corruption, damage or corruption of cyber data. As a general outline, here is what you should expect to have covered:

  • Investigation and Crisis Management
  • The Cost of Interrupted Business
  • Lawsuits & Extortion: This includes the potential for high legal expenses due to the breach. It can also aid in the cost of a ransomware attack.
  • Additional Expense Coverage: This provides coverage for communicating with patients about breaches and monitoring the credit of those who are at risk.

Contact us today to see if you have the right cyber liability insurance for your organization.