Modern problems require modern solutions. That’s why, in an increasingly digital world, even organizations in industries that may not have previously relied heavily on technology must now be mindful of associated risks and exposures. Cyberattacks and data breaches can have devastating consequences, necessitating consideration of maintaining cyber liability insurance to ensure adequate loss control measures.

How Does Cyber Liability Insurance Work?

Also known as cyber insurance, these policies function similarly to many types of coverage, establishing a contractual agreement between businesses and their carriers. Keeping up with premiums retains policyholders the right to file a claim for financial assistance following cyber incidents, such as phishing schemes, malware infections, distributed denial-of-service attacks and other data breaches.

What Does This Type of Insurance Cover?

Appropriate coverage can make all the difference in response to a cyberattack or other cyber incident. While the exact parameters of these policies can vary, many policyholders may be able to recoup the following losses and expenses following a breach:

• Investigative costs—These may include fees for hiring digital forensics firms to identify the cause and details of an incident.
• Expenses for managing the aftermath—In the wake of a cyber incident, businesses may require the assistance of outside help, such as IT contractors and public relations firms.
• Business interruption losses—Cyber incidents can derail normal operations, potentially leading to lost revenue, which insurance may help recover.
• Cyberextortion payments—Perpetrators may use ransomware to hold data hostage or commit blackmail. The right coverage can help meet their demands and avoid further damage.
• Legal expenses and fines—If a business is found to have been non-compliant with cybersecurity standards or faces lawsuits from affected parties, cyber liability insurance may offer essential aid.

Who Needs Coverage?

Cyber liability insurance has become an essential form of financial protection for businesses of all sizes and across all sectors. Cybercriminals have advanced their attack methods in recent years and expanded their target selection, leading to many more small- and medium-sized companies needing to account for such risks. Since smaller businesses often lack the robust cybersecurity measures and financial resources of larger corporations, sufficient coverage could make the difference between recovering from a breach or facing insolvency.

Get the Right Coverage

Contact Advance Insurance of Northwest Florida todayto learn more about coverage options or compare personalized quotes.