The US government spent over $14 billion dollars on cyber security in 2016 and plans to spend close to $19 billion in 2017!
Dealing with a data breach has a cost goes far beyond repairing databases, strengthening security procedures and/or replacing lost laptops. There are also regulations requiring notifications of affected customers that drive the costs for companies in cases where a date breach compromises confidential or personal data. Your standard business liability policy may not be enough to protect your company from cyber-crime. Just exactly how does cyber insurance work though?
Normally, there are a number of different cyber coverage’s available. To ensure you have the coverage that is right for you and your business, speak with one of our commercial experts to tailor a policy with the coverage’s based on the specific risks your business faces on a daily basis. To help you understand a cyber-insurance policy a little further, here are some definitions and explanations of what a typical policy would include:
- Third-Party (liability) and First-Party Coverage: Each company has an obligation to keep their customers’ protected health information (PHI) and personally identifiable information (PII) confidential. Your business faces potential liability if the information is exposed in a data breach. This certain coverage protects your company for liability to others and reimburses companies for expenses related to a data breach, which could include legal defense, a digital forensics teams, crisis communications and setting up a call center and credit monitoring for those affected by the data breach.
- Extended Reporting Period: Gives your company more time to detect and report a data breach. This extends the reporting period, which is typically 90 days, and also includes crisis management and security breach expense coverage. This is extremely important because given the nature of data breaches; your company might not recognize that it suffered a breach until after the expiration date of the cyber policy.
- Business Interruption Coverage: This type of coverage applies to the expenses and lost revenue that occurs due to a computer virus or cyber-attack that weakens a computer system. Many people have business interruption coverage as part of their business property coverage; but you may not know that many of those policies exclude cyber-crimes.
Let our commercial experts help protect you from a breach with cyber insurance and even more importantly, having your company prepared to respond effectively in the critical hours and days following a data breach.