Cyber Liability & Protection
That is why there is Cyber Liability and Protection Insurance, or Cyber Insurance. It protects businesses and individuals from Internet-based risks, and more generally from risks relating to IT infrastructure and activities.
What does Cyber Insurance cover?
Cyber insurance policies may include first-party coverage against losses such as data destruction, extortion, theft, hacking, and denial of service (DoS) attacks. Another important first-party inclusion is practice revenue for reputational damage due to a breach. Cyber insurance can also compensate businesses for losses to others caused by errors and omissions or failure to safeguard data. Other benefits may involve regular security audits, post-incident public relations and investigative expenses.
I have General Liability Insurance, so I’m covered, right?
Wrong. General business liability insurance policies don’t cover cyber liability. However, you can bundle multiple policies together and get a discount.
Without cyber liability coverage, you and your firm are solely responsible for any data breaches and information leaks, including the harm to your business and business income based on reputational damage. Moreover, if any of your customers decide to sue you for jeopardizing their data, you would be responsible for all of the court fees and settlements.