What Is Cyber Liability?
When a breach occurs, cyber insurance covers the range of expenses that arise.
These include identifying and solving the breach, recovering data, customer notifications, PR costs, possible credit monitoring expenses, legal expenses, potential fines from compliance regulators, extortion costs from ransomware, and general business interruption.
What Does Cyber Liability Cover?
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First Party Coverage
This covers damages a business suffers because of a cyber breach. This can include things like investigative services, business interruption coverage and data recovery
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Third Party Coverage
Intends to cover damages if a business' customers or partners are affected by a cyber attack. This can include legal fees, settlement costs, security failures and media liabilities.
3
Cyber Crime
Intends to cover damage due to any type of illegal activity that occurs using digital means. Examples of cybercrime are extortion/ransomware, phishing, social engineering, and wire transfer fraud.
Do I Really Need Cyber Liability?
Yes! Hackers use technology to scan the internet for businesses with weak defenses regardless of the size of the business. A recent Verizon Report notes that 43% of all cyber attacks are against small businesses. Worse, 63% of small businesses had experienced a breach in the last 12 months. ANY business with a computer and an internet connection is at risk - even if you don't sell anything on your website!
How Can A Cyber Attack Affect My Business?
A cyber attack can have a wide-ranging and severe impact on a business, affecting various aspects of its operations and overall well-being. Here's a list of ways a cyber attack can impact a business:
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Data Breach:
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Unauthorized access to sensitive customer or employee data.
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Theft of personal information, such as names, addresses, social security numbers, and financial details.
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Financial Loss:
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Direct financial theft, where attackers may siphon funds or conduct fraudulent transactions.
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Costs associated with recovering from the attack, including forensic investigations, legal fees, and compensation to affected parties.
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Reputation Damage:
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Loss of customer trust due to a perceived failure to protect their sensitive information.
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Negative publicity and media coverage can harm the business's reputation.
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Operational Disruption:
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Downtime and disruption of normal business operations due to malware, ransomware, or other cyber threats.
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Loss of productivity as employees are unable to access critical systems and data.
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Business Continuity Challenges:
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Difficulty in restoring normal operations quickly, leading to prolonged downtime and financial losses.
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Challenges in recovering lost or encrypted data, affecting the continuity of business processes.
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Check Out This Video on Cyber Insurance!
Don't wait until you're a victim of a cyberattack to consider cyber liability insurance!
Get a complimentary quote by calling 404-947-5010 or filling out the quote form below!