Cyber breach insurance provides coverage for losses from cyberattacks and data breaches as well as systems failure events due to a malicious virus.
Cyber insurance is usually covered by a minimal extension of coverage included from your commercial property insurer, or through a separate Cyber Liability policy purchased to cover your company's specific needs.
A cyber policy takes care of liability assumed by your business when a data breach involves (but not limited to) the following customer information:
All businesses who collect and use client information, as well as store sensitive data on electronic devices or in the cloud, need to consider buying cyber insurance.
You might think that only banks or manufacturing companies need secure cyber protection. In fact, if your business has an Internet presence at all or you interact with your clients or vendors in an electronic format (ie. email), you should purchase a cyber policy. You’re open to liability if you enter customer data anywhere such as:
If your systems get hacked, then you’ll not only potentially lose your own personal information, but your customer data becomes exposed as well. It’s your responsibility to notify all clients when you experience a data breach, and a big cost can come with that process.
Cyber security insurance affords your company protections against things like stolen information, viruses and malicious software, hacking attempts, and various types of cybercrime including fraud or identity theft.
A cyber breach involves loss or theft of data from:
Some breaches involve sending emails to the wrong person and exposing sensitive data to someone who doesn't have the right to view it. Other breaches involve hackers gaining access to your system and placing viruses so that you and other employees lose all access to portals.
Sometimes a hacker will:
DDoS (distributed denial of service) attacks are another form of cyberattack. They target networks or services in an attempt to disrupt normal traffic patterns by overwhelming the target’s infrastructure.
Cyberattacks aren’t limited to digital theft. Some hackers use ransomware attacks where they lock you out of your system and then demand a ransom before giving you access again.