Cyber Liability Insurance: Why Every Business Needs Digital Coverage

Computers, smartphones, tablets and other electronic devices have become essential in many workplaces across various industries. These electronics are often linked to company networks and servers. While such arrangements can help streamline operations and automate functions, they also create inherent cyber risks and exposures. Fortunately, with cyber liability insurance, your business can establish a buffer against the fiscal ramifications of cyber incidents.

What Is Cyber Liability Insurance?

Also known as cybersecurity insurance and data breach insurance, these policies can financially safeguard your business against various cyber-related losses. While commercial property insurance may cover tangible assets, cyber liability insurance can be coupled with it to assist with intellectual property and data. Additionally, it may help respond to incidents affecting other parties, such as your clients and customers.

Why Do I Need Coverage?

In the past, some businesses, such as small- and medium-sized enterprises and those that traditionally did not rely on digital solutions, may have been unlikely targets for cybercriminals. However, given the increased use of technology and online operations in modern workplaces, perpetrators have widened their target selection. Companies that work with particularly sensitive data, such as health records, financial information and social security numbers, may especially need coverage, as breaches could have dire ramifications.

What Can My Policy Cover?

Cyber liability insurance may include various financial securities. Specifically, in response to incidents, payouts could help you afford the following:

• Incident response costs, such as investigating the cause, notifying affected parties and hiring outside help
• Business interruption losses, including income you would have earned if you were forced to shut down networks or systems
• Noncompliance fines, such as those issued by regulatory agencies for substandard cybersecurity measures
• Legal expenses, including attorney fees, settlements and judgments made necessary by lawsuits

We’re Here to Help

Given the extensive presence of technology in today’s business world, your company cannot afford to be underinsured. Contact J.A. Faccibene & Associates, Inc. today to learn more about coverage options or compare personalized cyber liability insurance quotes.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.