Data Breaches and Cyber Liability Insurance

Cyber threats, data breaches and data losses have infected practically every industry segment globally, with both small and large businesses finding that their systems are severely vulnerable to the acts of these hackers who constantly attack companies and commit cyber crimes, often spreading malicious viruses and creating evolving network security risks.

The constant threat of a breach is alarming, making headlines on a daily basis, with most companies and organizations looking at ways to strengthen their cyber security in an attempt to mitigate risks. Most have also made the decision to invest in some type of comprehensive cyber liability insurance.

The insurance industry offers many cyber liability coverage options

The insurance industry has, over the last several years, responded with a number of cyber liability insurance policies made available on the market that can be tailored to address the individual, and often unique, business exposures of their clients, as well as that of the segment of which it is a part.

Making this coverage a component of your client’s insurance program is now considered key to any effective risk management plan currently in place. The best solution is to partner with a leading MGU and wholesaler, in order to provide protection against threats of this nature.

You need someone who has access to several carriers that provide cyber coverage meant to respond to a myriad of exposures. Your clients can only benefit from having a customized policy for their specific programs, including the healthcare industry, along with institutes of higher learning, as well as an even wider range of businesses and companies.

Some examples of protection provided on most comprehensive cyber policies include:

  • Breach of duty
  • Security costs
  • Acts performed by third parties (contractors, vendors, customers, etc.)
  • Privacy claims caused by employees, and
  • Media liability (copyright/trademark infringement and personal injury)

Security costs are considered one of the major benefits of comprehensive cyber liability coverage and include forensic costs, credit monitoring, public relations management and notification costs. Other notable coverage in the comprehensive cyber form relates to damage caused by a hacker, business interruption and cyber extortion. Your clients can no longer afford to be without cyber liability insurance.