Many businesses question: Do we need Cyber Liability Insurance? It is possible to consider that maybe IT consultants or start-ups are ideal candidates for Cyber Liability Insurance. However, cyber intrusion affects all types of businesses of which many would benefit from carrying adequate cyber liability coverage.
In fact, anywhere you store, send or receive sensitive data can be vulnerable to a devastating data breach and the target of malicious actors. That means that the point-of-sale devices, office computers, networks, and even the laptops and mobile devices your business uses to operate (on and off-premise) may be attaching an expensive uninsured risk to your organization!
What It Is and What It Isn’t.
Cyber liability insurance is about protecting your organization from liabilities that stem from your business’ cyber-related risks. On the other hand, cyber liability insurance is not about providing your company security defense solutions or giving any consultancies regarding ways for your organization to beef up their cybersecurity. Although, some Cyber Insurers will offer these services to their policyholders.
According to a major study, the average costs relating to the aftermath of a data-related business leak can exceed $3.5 million in damages.* That could mean that a cyber liability intrusion has the potential to be the difference between an organization operating — or not!
With a growing trend of industries today relying ever more on technology to facilitate day-to-day operations, the need for protection against cyber-related liabilities is growing. As always you should research what options are best for your organization. Cyber Liability Insurance may vary from policy type, coverage and Insurer. Make sure to compare all available options when choosing a policy.
Note: The examples and descriptions used throughout this article are for general information purposes only, not legal advice. Coverage of losses are not guaranteed, rather they are subject to the decision of insurance underwriters and other potential authorities. Coverage availability and limits can vary based on person, location, and other variables. Please consult with your insurance agent and review your insurance policies to understand your existing and/or potential coverage options. Read our disclaimer.
*Source: IBM & Ponemon Institute, “Ponemon Institute Releases 2014 Cost of Data Breach: Global Analysis”.
© Jeff Munns Agency, Inc.