Cyber Liability Policies and Why You Should Have One
No one expects to experience a data breach. There are hundreds of stories about businesses being devastated from cyberattacks, but it is just as likely to happen to you as it is to anyone else. Problems such as phishing, compromised networks, and network breaches all can leave your business vulnerable. It is important to have a plan in the event of a cyberattack, and a cyber liability policy is a great place to begin.
The losses from a data breach can be detrimental to your business, and even result in costly legal penalties. Since commercial insurances do not cover these kinds of damages, we advise you look into cyber liability insurance for your business. Like commercial insurance, cyber liability policies cover the losses a business may suffer from a cyber-attack. They mainly target mitigating losses of business, legal expenses, IT forensic expenses, and reputation. Continue reading for more information to consider about cyber liability policies.
What Cyber Liability Covers
To start, there are two main types of cyber liability policies: first party coverage and third-party coverage. First party coverage protects a company from the direct losses of a data breach including employee and customer information. First party coverage also handles the replacement and recovery of lost data, lost income, and other related fees.
Third party coverage protects a company from a partner, customer, vendor, etc. that sues your business following a cyber-attack. Likewise, this plan covers legal expenses, accounting costs, settlements, judgements if your business is found liable, and losses related to copyrights.
Benefits of a Cyber Liability Policy
There are many different cyber liability policies to fit your business’ needs. Beyond the flexibility, here are some more amenities that most cyber liability policies can provide for your business.
- Incentivizes stronger security practices: Cyber liability insurers will encourage your business to meet a certain standard of cyber security. If you do not comply, they may retract your plan.
- Legal support: Your policy will include help with any legal actions that need to be taken involving your cyber-attack including costs and arrangements.
- Business Interruption Loss Reimbursement: Cyber liability insurers will assist your business with fees and lost revenue. This will help keep your business afloat through tough times.
simpleroute Can Help!
A cyber liability policy is essential for strengthening your business’s cybersecurity posture. We strongly recommend exploring the policy that best fits your needs. At Simpleroute, we can help review your current policy to ensure it aligns with your requirements. Call us at 802-881-0092 or use the contact button below to discuss your cyber liability needs.