Cyber Liability
It's a digital world so you better protect what's online
What is Cyber Liability Insurance?
Cyber liability insurance covers losses or damages relating to information from IT systems and its networks. It also assists with management of such incidents, a crucial element in hindering potential reputational damage.
What does Cyber Liability Insurance cover?
Essentially, cyber insurance coverage fall into two categories: first party liability and third party liability. The typical coverages can be found below:
- First Party Expenses: business interruption, electronic data replacement, forensic breach response and reputational damage.
- Third Party Liability: security and privacy liability, defence cost, regulatory breach liability.
These coverages can be tailored to your business. Such common incidents include network extortion, cyber espionage, identity theft, data breaches and online scams.
How important is Cyber Liability Insurance?
With advancement in technology and increased digitalisation, data storage has become more convenient. However, with convenience comes risk. You need to constantly ask yourselves – Are you prepared for any cyber attacks or data breaches? Such attacks can be catastrophic to your business. Cyber insurance can minimize the impact from such incidents.
Who needs Cyber Liability Insurance?
How much does a Cyber Liability Insurance policy cost?
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. The below are generally the factors that insurers take into account, although there may be further factors:
- 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, insurers may reward the dedication and efforts in preventing cybercrime by reducing premiums.
- Sum Insured: The higher the coverage and the lower the deductibles, the higher the premium is likely to be.
