Cyber liability insurance, sometimes short for cybersecurity, privacy, and media liability insurance, helps your company respond in the event of a cyberattack or data breach. If your network or computer systems are hacked into or corrupted by a virus, for example, cyber liability insurance can be essential.
Unfortunately, data breaches have become commonplace in today's financial world, especially in America.
According to a recent survey, nearly two-thirds of retailers in the United States have been victims of some type of data breach, and 37% have been breached in the past year. That risk will continue to be present, since almost all of the retailers surveyed (96%) claim they use sensitive data within digitally transformative environments.
We put out a lot of information on cyber crime and the need for Cyber Insurance. We do it because it’s the world’s fastest growing crime – and nobody is immune. Worse, anyone from the kid next door to your dedicated employees can be perpetrators. But worst of all, more often than not, cyber attacks aren’t typically covered by your standard property or crime policies.
If that isn’t enough to convince you that you need a cyber policy, here are nine more reasons why you do.
Cyber liability insurance is an insurance policy designed specifically for data breaches, malicious attacks, and other cybersecurity threats. Some policies are tailored to a certain industry, such as retail, healthcare or banking. While the primary goal of cyber liability coverage is to protect the business, it can also extend to the clients who interact with the business.
There are two types of cyber liability coverage:
These policies may also be referred to as 'cyber and privacy insurance' or 'media insurance.' They typically require a deductible in the event of a claim, much like a liability policy for car insurance.
First-party cyber liability insurance covers the expenses a business may experience after a data breach. These include:
The precise coverage and liability amounts vary by provider and by policy.
Third-party cyber liability insurance is mostly designated for legal claims. Coverage may include: