Cyber Liability Insurance

It is more or as important as General Liability Insurance?

Information technology is now doubling every four months. This staggering pace of development and change makes computer software and protections obsolete at the fastest rate in human history.  Once quantum computers become common, technology will be doubling in hours instead of months. Protecting one’s business information will likely be next to impossible.

Only the most astute business owners understand the complexities of protecting sensitive data and the cost if computer security is breached. The most vulnerable are small businesses that do not have the resources to adequately monitor and keep systems up to date. Currently, 43% of all breaches target small businesses.

Common costs associated with a breach

• Hiring a forensic expert to determine the impact of an attack
• Implement new security systems, software, and protocols
• Ransom to a hacker that takes control of the system
• Cost of regulatory notifications to inform all affected parties
• Interruption of business (discounts to affected clients, closed accounts, etc.)
• Legal fees to defend or settle lawsuits
• Monetary penalties from government bodies

What to look for in Cyber Liability Insurance

First, you want a Cyber Liability insurance policy that provide you with immediate assistance from a team of cyber security and privacy law experts. While many General and Product Liability Insurance policies are providing Cyber Liability as part of the package or policy, these types of coverages are typically very narrow in their scope of coverage and do not provide access to a team of experts for assistance.

Second, I recommend purchasing a stand-alone Cyber Liability Policy. When reviewing the Cyber Liability quote, you should get a comparison of coverages to other Cyber Insurance provider policies. And be sure that a team of experts are available to assist your business in the event of a data breach.