Cyber Liability

Cyber liability insurance covers losses or damages relating to information from IT systems and its networks. It also assists with the management of such incidents, a crucial element in hindering potential reputational damage.

Essentially, cyber insurance coverage fall into two categories: first party liability and third party liability. The typical coverages can be found below:

• First Party Loss: business interruption, electronic data replacement, forensic breach response and reputational damage.
• Third Party Loss: security and privacy liability, defence cost, regulatory breach liability.

Such common incidents include network extortion, cyber espionage, identity theft, data breaches and online scams.

If your business handles sensitive data, such as names, gender, age and banking information, and relies on computer systems to conduct your business, then you fall under the category of businesses that need cyber insurance. Nonetheless, it must be emphasized that you should adhere to proper protection protocols in order to protect your company’s assets. What’s more, it does not matter what size your business is, whether you are simply a mom and pop shop that use some sort of technology or you are a global company, cyber liability can be beneficial for you. As time goes on, the impact technology makes on your business will only increase. Hence the risk will only correlate and it is better to be proactive than reactive.

The cost for a cyber liability policy can vary from businesses to businesses. With more and more cyber attacks each year, insurers have taken a stringent approach in determining premium, as greater emphasis is given to strength and security measures. Further factors include the following:

• Size: The more employees, the greater risk of phishing and cyber attacks.
• Industry: The determining factor as the insurer will determine whether your industry is high, medium or low risk.
• Annual revenue: The more money your business makes, the greater the risk of a cyber attack.
• Strength and Security measures: Should high security measures are installed and proper procedures are in place after a cyber attack, insurers may reward the dedication and efforts in preventing cybercrime by reducing premiums.

At CHAZ, we strive to be at the forefront in tackling emerging businesses risks with innovative solutions. With continued and incremental shift in businesses transitioning to digital technology, the risks associated may be unprecedented to most; however, we have the capabilities to provide the neccessary means to guide guid any type of businesses of the potential pitfalls in the cyber world.