Cyber security threats, data breach and data loss have permeated every industry segment, with large and small business vulnerable to hackers, malicious viruses, and network security risks. Cyber attacks make headlines every day, with companies looking to beef up their cyber security insurance to mitigate risks.
Over the last several years, the insurance industry has responded with a number of Cyber Security insurance policies available on the market that can be tailored to address your company’s unique business exposures. Making this coverage a part of your business insurance program is key to an effective risk management plan.
According to a 2015 report by Hewlett Packard and the U.S.-based Ponemon Institute of Cyber Crime, hacking attacks cost the average American firm $15.4 million per year, double the global average of $7.7 million. Most businesses don’t have that kind of money lying around, and as a result, nearly 60 percent of the small businesses victimized by a cyber attack close permanently within six months of the attack. Many of these businesses put off making necessary improvements to their cyber security protocols until it was too late because they feared the costs would be prohibitive.
What’s Covered in Cyber Security Insurance?
There are two major types of Cyber Liability Insurance:
- First-party coverage offers financial compensation to help an insured address immediate customer and business needs.
- Third-party coverage protects a client in the event of a lawsuit brought by a customer or partner in the event of a data breach.
- Electronic transfer of funds
- Cyber extortion
- Deceptive transfer
- Telephone toll fraud
- Privacy liability
- Website media liability
- Payment card industry
- Data breach team
- Digital asset loss
- Business interruption
Talk to one of our cyber protection experts at an office nearest you to find out how affordable it can be to add cyber security insurance to your risk management program.
Learn more about data breach and cyber security insurance from our blog:
Protect Yourself from Data Breach