Cyber liability insurance can ensure that your business is prepared for the unexpected. No company can completely prevent data breaches from occurring or malicious employees from committing cybercrimes, but it’s possible to prepare for the possibility by investing in a comprehensive cyber liability policy.
If you store sensitive customer information electronically, including credit card numbers or social security numbers, consider purchasing cyber liability coverage. This type of policy can protect your business from financial loss associated with breaches in sensitive data. In addition, it can cover the cost of hiring a public relations firm to help restore your reputation if your organization experiences an attack.
What does cyber liability insurance cover?
Cyber liability insurance is an important type of coverage to consider when you’re shopping for business insurance. It protects your company against a range of cybercrimes, including data breaches, hacker attacks, and other cyber-related incidents.
Cyber liability insurance covers a wide range of risks that can result in significant financial losses for businesses. A cyber liability insurance policy can be purchased to provide protection for the following types of losses:
- Losses resulting from a breach of confidential information, such as customer names, addresses, credit card numbers, and health information.
- Losses that result from a computer virus or other malicious code.
- Business interruption caused by a computer system failure.
- Losses from an email that is sent with an attachment containing malicious code.
- Losses that are resulting from an employee accidentally sending sensitive personal information about customers to a competitor.
- Losses resulting from the theft of mobile phones or laptops containing confidential information.
Cyber liability insurance provides protection against certain cyber-related events. It does not provide protection against falls, fires, flood damage, or any other non-cyber risk.
How much does cyber liability insurance cost?
Cyber liability insurance is a relatively new type of insurance. Factors such as a business’s industry, size, and location all play into how much you will pay for cyber liability insurance coverage. Unfortunately, since this type of coverage is relatively new, there is no set standard cyber insurance pricing model.
The cost of cyber liability insurance varies by industry but typically ranges from $100-$500 for smaller risk businesses and upwards of $1,000-$2000+ for high-risk businesses. Because some businesses present more of a risk than others, insurers charge higher premiums. The industries with the highest cyber liability insurance premiums are payment processing, eCommerce, banks, investment companies, legal firms, and healthcare.
In the digital age, businesses spend a lot of time and money building their online presence and attracting and converting visitors into customers. A single breach in security could have disastrous consequences, however, and cyber liability insurance can help businesses avoid those consequences. This type of insurance protects your business from the risks associated with doing business online, including liabilities caused by malware infections or data breaches that result in financial losses for your customers. Protecting your reputation will keep you secure in the long term—it’s up to you to make sure that your business is secure as well.