Cyber Liability Insurance

Cyber risks and exposures are among the top concerns many organizations must account for. As technology has become increasingly engrained in modern workplaces, businesses of all sizes and across all sectors should consider data breaches and other cyber incidents potentially catastrophic. With this in mind, cyber liability insurance should be regarded as a critical loss control measure. 

What Is Cyber Liability Insurance? 
Also known as cyber security insurance, this coverage can provide crucial financial protection for policyholders in response to cyber incidents. These policies establish a binding agreement between organizations and insurance companies and can ensure access to the funds and resources needed to manage the aftermath of incidents that might otherwise incur devastating financial ramifications. 

What Does Cyber Liability Insurance Cover? 
The details of these policies may vary depending on an organization’s needs and preferences and their insurance provider, but typically, coverage includes financial aid for the following: 

• Incident response costs, such as notifying affected parties and investigating the cause of the incident
• Data restoration expenses, such as for systems, equipment and data that have been compromised
• Cyberextortion payments in response to ransomware attacks
• Business interruption losses, such as lost or reduced revenue due to a cyber incident disrupting normal operations
• Hiring additional help, including credit and fraud monitoring services and public relations firms
• Noncompliance fines issued by regulatory bodies
• Legal expenses arising from lawsuits, such as for representation, court costs, settlements and judgments.