Other Business Solutions
What is Cyber Liability Insurance?
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.
How important is Cyber Liability Insurance?
Who needs Cyber Liability Insurance?
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 needs cyber insurance. 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 has on your business will only increase and the risk will only correlate. Nonetheless, whether you are taking out a cyber policy or not, it must be emphasized that you should be proactive rather than reactive by adhering to proper protection protocols with detailed risk management plans.
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.