Cyber Liability Insurance provided by Altima Auto Insurance Agency
Your networks and data are the lifeblood of your business. From your brand reputation to employee and financial data, cyber attacks are increasing in their frequency and their intensity. Couple that with the need to comply with regulations like the GDPR and it can seem overwhelming. Our team is ready to customize the solutions that can keep your organization and all its information flowing smoother and safer.
What is Cyber Liability Insurance ?
Cyber liability insurance covers financial losses that result from data breaches and other cyber events. Policies vary widely because most insurers that offer cyber coverage use forms they’ve developed themselves. Many policies include both first-party and third-party coverages.
First-party coverages pay out-of-pocket expenses that a firm directly incurs as a result of a breach. Third-party coverages apply to damages or settlements a business is obligated to pay as a result of claims or suits for injuries that result from the company’s actions or failure to act. For instance, a client sues his therapist for negligence after a hacker breaches the therapist’s computer system, steals the client’s treatment records, and releases them online.
Many cyber policies provide a range of coverages, some of which are automatically included and others that are optional. A separate limit may apply to each coverage. Some coverages may apply only after the insured business has paid a deductible or a retention.
What is usually covered under Cyber Liability Insurance?
Extortion liability cover
The cyber insurance policy also covers the losses due to a threat of extortion and the professional fees related to dealing with the extortion.
What is the Importance of Cyber Liability Insurance?
Any business with an online component or one that sends or stores electronic data might benefit from cyber insurance, as may any organisation that relies on technology to conduct its operations, which is pretty much every business.
Private personal data such as contact details of customers or staff, intellectual property, or sensitive financial data are all potentially very lucrative to cyber criminals who could could attempt to break into the network and steal it.
There’s also the potential for hackers to cripple a network with ransomware. A cyber insurance policy that covers ransomware could go a long way to helping organisations that fall victim to attacks like this find a way out of the predicament.
As cyber risks evolve, so too must your coverage. Understanding where traditional policies and other property and casualty insurance policies complement, overlap or exclude a cyber exposure is critical. Contact us today to know more!