So here are some real-world examples of what’s going on with cyber liability claims, not just policies but claims. According to acuity insurance, there was an increased need for insurance between June 21 and June 22. In one year, claims on commercial policies spiked by 50%, and on personal lines, it spiked by 90%. That’s a big deal. And part of the reason is that as we know, businesses are more connected than ever. We’re not going off the grid, everybody’s going more and more into electronic virtual data, even in the cloud which puts everybody at a greater risk of cyber claims.
Remember, cyber-attacks aren’t covered under standard homeowners or business insurance policies. If you want to get that coverage, you need to add it as an endorsement to your policy or a standalone cyber insurance policy. And there’s nobody immune from cyber attacks. Individuals and businesses are both at risk for cyber attacks. Sometimes it’s a hacking event sometimes it’s a ransomware event. Now you’re seeing more data exfiltration where hackers are going in and extracting all of your data from your computer or from your Google Drive or from your server, and then deleting it, wiping off your computer so the only people in possession of your records is the hacker. They’re either going to make you pay money to get it or maybe they don’t even care about getting you to pay money. They might be able to sell it for more on the private market. If you’re a business they can sell it to competitors.
So those are some real numbers coming from the cyber insurance industry that might give you an opportunity to look at your policies and get with a good agent or broker or your own insurance agent and ask them what type of coverages might be good to add to make sure that your cyber protection is at least to the level that you want it. Because you have fire insurance, you have liability insurance, you’re already protected against some risk. If this risk is increasing, you want to make sure that your coverage and your risk profile is matching it accordingly.
Looking for more information?
A cyber liability policy can help cover your business and keep you updated with industry tips like this one. Get in touch with us today to learn more about cyber liability insurance coverage, or set up a no-obligation consultation with a commercial lines expert through TelaClient.com.