Cyber Liability Insurance

Protect your business from hacks, cyber attacks, and other online threats.

Cyber liability insurance provided by Strickler Insurance.

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Cyber liability insurance and data breach insurance help protect your business with online activities and information or data based materials your business provides. The world has moved online and so has the workplace. Working from home, online banking, web data banks and internet privacy are all susceptible to data breaches, online hacking, data loss, and theft. The financial loss can be astronomical. Truly data security breaches have the potential to completely destroy your business’s finances.

Luckily we have a hack for you. Cyber liability insurance can protect your business from the dangers of online theft and security breaches. Protect your business’s future in an online world with cybersecurity insurance.

Does My Business Require Cyber Liability or Data Breach Insurance?

Does you business have personally identifiable information or personal health information anywhere within your computer or online databases? This includes employee data. If all of your organization’s online presence and computer activities were to stop for two weeks would your organization still be able to function? Think about all of the information and data placed on your computers, phones, and online. If that data could be accessed by anyone, how safe would your business be? The importance of Cyber Liability insurance is unmistakable when you start looking at the cost of a data breach.

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Cyber Liability

Cyber Liability Coverage

Risk Factor

The Internet has spun a whole new web of liability exposures. E-commerce, social networking, cloud storage, and other technologies bring great benefits to large and small businesses alike. But with these benefits also come challenges, including protection of privacy, data, and financial information of your customers. If this information is lost, stolen, or compromised, your company is at risk. In fact, you may even be required by law to alert those impacted by the breach and to pay for any financial loss incurred.

Solution

Cyber liability coverage offers protection due to unauthorized access of electronic data or software within your network. It also provides coverage for spreading a virus, computer theft, extortion, or any unintentional act, mistake, error, or omission made by an employee. This coverage is quickly becoming more and more important as you embrace technology to help run your business.

First-Party Coverage

Risk Factor

If your company is faced with a data breach or cyber-attack, you may be forced to cover breach-related expenses such as crisis management, hiring a public relations firm to manage a data breach incident, costs associated with forensic analysis, the cost of repairing and restoring computer systems if there is a virus that destroys business software and data, and the loss of business income resulting from a data breach.

Solution

First-party coverage will insure your business for losses to your own data or lost income or for other harm to your business resulting from a data breach or cyber-attack. This coverage will pay you for things like business interruption, the cost of notifying customers of a breach, and even the expense of hiring a public relations firm to repair any damage done to your image as a result of a cyber-attack. Having this funding available in the event of a crippling hack can keep the lights on till you’re able to resume your normal business operations.

Business Income

Risk Factor

What would you do if an email virus impacted the operation of your database and prevented you from serving clients for a day or more? Or what if a hacker or cyber-criminal caused a system outage or extended downtime, leaving your business inoperable? These and other events can destroy your ability to serve clients and bring in revenue, which can have a major long-term impact on the viability of your business.

Solution

Business interruption insurance compensates you for lost income if your company cannot operate as normal due to disaster-related damage that is covered under your commercial property insurance policy, such as data breach or cyber-attack. Business income insurance covers the revenue you would have earned, based on your financial records, had the disaster not occurred. The policy also covers operating expenses, like electricity, that continue even though business activities have come to a temporary halt.

Third-Party Coverage

Risk Factor

If your business handles sensitive customer data (such as email lists, credit card records or other files), data breaches pose a serious threat to your financial stability. A lawsuit resulting from a data breach means your business is responsible for paying legal fees, court-ordered judgments or settlements and other court-related costs.

Solution

Third-party coverage protects you in the event of a lawsuit brought by a customer or partner for a data breach that your business' actions or negligence allowed.

Regulatory Claim Coverage

Risk Factor

If your business experiences a data breach or violation of confidential information during regular business operations, you may be found in violation of state or federal privacy laws and be required to pay fines for the violations or other regulatory issues.

Solution

You may be eligible for regulatory claim coverage which would offer protection in response to proceedings related to state disclosure laws and other governmental actions that can result in defense costs, fines and/or penalties. Coverage does vary and may be restricted by state law.

Ransom Coverage

Risk Factor

If hackers gain control of critical systems, they may demand a ransom be paid to avoid additional consequences. Sometimes these can be empty threats, but it’s impossible to know for sure. Paying the ransom can be costly. Taking a chance by choosing not to pay can sometimes put a company out of business.

Solution

Coverage for ransom and cyber extortion can be included in cyber liability policies and can help cover the cost of ransom to regain control of network systems. This is often not included in a standard policy, may include a separate sublimit and deductible, and may require adherence to certain conditions set forth by the insurer.

If you can say yes to any of the following you need cyber liability or data breach insurance:

  • Do you have payments that occur online or over email where a person’s information is within your possession?
  • Do you have all of your employee’s personal information stored on your office computers?
  • Do you make payments online for materials or services?
  • Do you use software to manage clients?
  • Do you use software for internal communication and workplace finances?
  • Do you use your phone for purchases as well as selling products?
  • Does your business pay your employees using direct deposit?

 

High-Risk Businesses That Need Cyber Liability Insurance:

  • Healthcare Businesses
  • Government Organizations
  • Education Businesses
  • Finance Businesses
  • Insurance Companies
  • Internet Marketing Companies
  • Real Estate Businesses
  • Software Development Company
  • Ecommerce Business
  • Online Streaming Service
  • AI Platform Services

 

What Is The Difference Between Cyber Liability Insurance and Data Breach Coverage?

There isn’t a huge difference in how the two coverages work and they are technically connected. Both deal with information being stolen but in different ways.

What is Data Breach Coverage?

This is coverage that helps when data such as your personal id info like social security number, driver’s license id or bank account numbers, or personal health information.

What is Cyber Liability Insurance?

This cyber insurance is directly connected to financial loss that could occur if your business experienced a cyber attack. This cyber attack could be anything from a website takedown to a person hacking your computer system. The financial loss could be a result of data and files being deleted, client’s data being stolen and utilized. Cyber Liability Insurance is typically used by larger businesses.

How Much Does Cyber Liability Insurance Cost?

That depends on your business’s history with being subjected to a cyberattack, the number of customers and clients we are protecting, the revenue protected and the type of data being protected. The cost can vary, but we can determine that cost for you. Contact Strickler Insurance for a free cyber insurance quote.

What Does Cyber Liability Policies Cover?

Data breach insurance or cyber liability coverage protects you from the expenses associated with the cyber attack. From the loss of business to the expenses of replacing the data systems that were corrupted. You can also get coverage for the possible situation where you would breach someone else’s data accidentally. Tech businesses typically have coverage for this type of situation.

After Your Business Experiences A Cyber Attack, What Happens?

This is a generally recommended process for a majority of cyber attack situations.

  • Notify the involved parties: This includes your business, the businesses and or employees whose data was breached, and your insurance company.
  • Restore your operating systems, website, online database to working order.
  • Depending on the data stolen seek legal counsel.
  • Determine the full scope of data lost or stolen.
  • Deal with any situations of extortion.
  • Pay damages to all parties involved.
  • A lot of businesses will offer free monitoring services to data breach victims.

 

Or, you could contact your cybersecurity insurance first and we will help you through this whole process.

Protect Your Business’s Future By Getting Cyber Insurance Coverage

Be proactive in protecting your cybersecurity and data, but also be proactive in getting insurance coverage that will protect you when your data is breached. Having cybersecurity is a must, but when that fails as it often does, you want to be protected. Contact Strickler Insurance for a free insurance quote.

Cyber Liability - Group of Employees Using Computers in their Brick Office

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