Data security experts agree that no matter the size or scale of your business, a data breach is inevitable. In fact, it’s possible that your data has already been compromised and you aren’t even aware that a breach has occurred. As business becomes more connected and cyber attackers become more adept, the need for data security will only increase. Take, for example, the recent Equifax data breach in which the personal data (i.e. social security numbers, addresses, birth dates and drivers’ license information) of over 143 million people was compromised.
Have you ever wondered what coverages are usually included in a cyber liability insurance policy? In fact, cyber liability insurance policies are generally quite robust. Similar to other types of business liability insurance, cyber insurance can cover lost sales due to business interruption and the cost to notify customers if there is a breach. This is especially important for small businesses; a data breach is potentially disabling for a smaller operation.
Here are 8 protections typically covered in a cyber liability policy.
This provides coverage for losses incurred as a direct result of damage, alteration, corruption, distortion, theft, misuse or destruction of electronic data and computer software.
This provide coverage for reimbursement for income loss and interruption expenses, and special expenses as a result of the total or partial interruption, degradation of service or failure of a computer system.
This provides coverage for the reimbursement for the extortion expenses and monies resulting directly from a credible threat (or series of threats.)
This provides coverage for payment on your behalf should you become obligated to pay damages and claims expenses and claims expenses from your actions, errors or omissions or for others for whom you are responsible, including outsourcers and vendors, following a security breach or privacy breach.
This provides coverage for payment on your behalf when you become obligated to pay damages that result from a privacy breach involving an employee’s private information.
This provides coverage for payment on your behalf for damages and claims expenses as a result of defamation, libel and slander, invasion of an individual’s right to privacy, plagiarism or misuse of ideas under an implied contract, infringement of any copyright, trademark title or service mark, domain name infringement or improper deep linking or framing.
This provides coverage for reimbursement for income loss interruption expenses and special expenses directly as a result of total or partial interruption, degradation of service or failure of the computer system which is directly caused by an act of terrorism.
When it comes to cyber security, it is always wise to prepare for the worst case scenario. With that in mind, businesses should consider cyber security insurance. Lanier Upshaw offers these types of plans to help companies deal with this emerging risk. Depending on what type of coverage you receive, cyber security will cover costs like notification, identity protection solutions, public relations, legal fees, liability and more. Lanier Upshaw can help mitigate the risk of cyber security issues for your business, contact us here.