Cyber insurance is a specialty class of insurance intended to protect both businesses and individuals from internet-based risk such as hacking, malware, and other data breaches that involve sensitive customer information.
How Does Cyber Insurance Work?
Cyber liability insurance helps cover financial losses due to data breaches or other cyberattacks, as well as the expense of notifying all affected parties, privacy investigations, crisis management services, lawsuits, and state and federal regulatory fines following an attack. For instance, if someone hacks into your computer system, starts deleting files, and demands a ransom, this type of insurance can help you recover lost files and income. Risks of this nature are generally excluded from traditional commercial general liability insurance policies.
Who Needs Cyber Insurance?
As the world continues to become more reliant on digital forms of data storage and communication, the global market for cyber insurance is exploding and is estimated to become a $20 billion dollar industry by 2025. Unfortunately, most companies are not immune to data breaches–and small businesses are no exception. In fact, ransomware attacks disproportionately affect businesses with less than 1,000 employees. The reality is, any business–regardless of size–that stores sensitive data needs cyber insurance, stat.
Before you contact a broker about a new cyber insurance policy or renewing your current one, let us help you determine exactly what you need to do in order to secure or keep your coverage—and implement it. Our experts can help you uncover any potential cybersecurity exposure risks you may have and address them, so you can stay up-to-date on the latest cyber insurance underwriting policies. As the cyber insurance market continues to change, so will the prerequisites for qualifying for coverage.
If you discover that there are steps you need to take to further mitigate your risk, we’re always here to help. Talk to an expert today.