Cyber Liability Insurance Explained
What is Cyber Liability Insurance?
With the so much business taking place online, it is specialty designed insurance to protect your business from theft of your data, hacking, computer system failures and phishing.
What Does Cyber Liability Insurance Cover?
- Breach of Data which provides coverage if customer, employee data is stolen or corrupted.
- Ransomware which often happens via email or employee clicking on the “wrong” link when on the web. This is where they hold your information hostage until you agree to pay them ransom.
- Business interruption which covers you if you can’t conduct business because of an incident.
- Legal costs or fines as a result of an incident.
- Public relations/reputational repair and crisis management to help rebuild trust with your clients and communities.
- Identity recovery protection and personal services for persons affected.
Why Do you Need Cyber Liability Insurance?
If you transact any portion of your business online, store customer information, takes payment information online (even if using a 3rd party service), and uses computers you are at risk of a cyber-attack. Attacks can be costly and put your business at risk. Cyber insurance is there to help you through the process to ensure your business can quickly respond to these incidents.
Read more from one of our company partners, Chubb, about navigating cyber risks. View the guide.
How is the Cost of Cyber Liability Insurance Determined?
The cost varies based upon your business operations, annual sales, security in place (such as multi-factor authentication*) and limits of insurance to start. For a small retail business, we have seen the cost as low as $600 or $800 per year.
*Multi-factor Authentication (MFA) is an authentication method that requires the user to provide two or more verification factors to gain access to a resource such as an application, online account, or a VPN. Some systems have already implemented them, utilizing a text-based code for secondary verification or fingerprint scanners. You can also purchase added protection through 3rd party software. This is the steppingstone to protecting your client’s information and your business online.