Cyber crime is on the rise, putting businesses both small and large as well as individuals at risk.
The need for cyber insurance has never been greater.
Providers offering internet liability insurance often find that many do not actually understand this important type of coverage is and whether or not they need it.
Understand the basics of cyber liability insurance so you can make an informed decision as to whether it's something you need.
What Is Cyber Internet Liability Insurance?
Cyber internet liability insurance is a policy that covers damages caused by a data breach and the unlawful access of private and sensitive information.
Covered data breaches are those caused by hackers, competitors, employees, foreign governments, and even terrorists.
This insurance can protect businesses and individuals from the liabilities and other expenses incurred as a result of a data breach.
Who Needs Cyber Insurance?
As more and more people and businesses have become connected via computers and other electronic devices, the need for cyber insurance has grown exponentially.
Any business that accepts, stores, or transfers electronic data of any kind, especially financial data and personal information, should add this coverage to its business coverage portfolio as all types of businesses have become the targets of hackers.
Many individuals should consider adding this insurance to their personal policies as well for the protection it offers against fraud, data theft, and other issues that can arise after the theft of personal information.
Businesses that should consider this type of coverage include:
- Retail Businesses
- Healthcare Services
- Banks, Accountants, and other Financial Institutions or Services
- Law Firms and Insurance Companies
- Schools and Universities
- Entertainment and Hospitality Businesses
- Individuals using connected computers, smart devices, smart appliances, and more.
What Does Internet Liability Insurance Cover?
Internet liability insurance protects businesses and individuals in important ways:
- Coverage for liability claims that result from a data breach.
- Coverage for the costs of forensic investigation, notification, customer support and credit monitoring, and more.
- Coverage for E&O issues, media and public relations management, legal advice and defense, and more.
- Coverage for business incurred regulatory fines, loss of income, and other associated business expenses.
- Coverage for individually incurred forensics, repairs, fraud protection, legal assistance, and other expenses.
Why Is Cyber Liability Insurance Important?
The incidence of cyber crime continues to rise every year.
Businesses can suffer considerable losses, both financial and reputation, when their private information is accessed unlawfully.
Many businesses without this coverage are forced to close after a breach due to the extent of damage caused and cost of recovery.
In Summary
Individuals may experience the damaging effects of identity theft, credit damage, and other threats when their information is stolen.
Cyber insurance coverage offers the ability to respond to liability and financial claims made as a result of a breach, prevent future breaches, and continue on.
Most personal and business insurance companies now offer some type of cyber insurance to protect their customers against the rising threat of data breaches and theft.
With the right internet liability insurance, businesses and individuals will have access to the important services needed in the event of a data breach!
