Cyber insurance has become a necessity for corporations and individuals
just like any other insurance policy. Despite the growing popularity,
choosing the right cyber insurance policy can be confusing. However, it
is vital that companies and people figure out a way to defend themselves
from cyber-attacks. Below, we talk about what you should look for when
cyber liability insurance.
Understanding the Policy
Cyber insurance isn’t as generalized as other types of insurance
coverage. Each company has unique policies and lists of coverage options.
Although different options can be good for consumers, it also means that
reading and understanding the policy you are interested in is very important.
This is because there is no benchmark that can be used to help with your
assessment. A professional insurance administrator can help walk you through
the selection process and answer your questions or concerns about policy details.
Types of Coverage
Privacy Liability: Covers liability if a company fails to protect personally identifiable
or confidential corporate information in its custody or control, or by
others on its behalf.
Network Security Liability: Covers liability if a company’s network security doesn’t stop
cyber-attacks like unauthorized access or unauthorized use of corporate
systems, or fails to prevent the transmission of malicious code.
First Party Coverages: Covers a company’s expenses that result from a data breach. This
includes expenses for retaining a computer forensics firm, complying with
privacy regulations, notifying and providing credit monitoring services
to affected people, and legal /public relations management services.
Understand Your Specific Needs
The use of and dependence on data varies from company to company. Data
held and used by financial or health care businesses are often valuable
to criminals, while online merchants, might suffer greater losses if a
cyber-attack crashes their website or interrupts services. Different policies
have different limits, sub-limits, and exclusions for different kinds
of losses. This is why it is important to get help from an insurance administrator
who can identify exactly what you’re vulnerabilities are, and what
type of coverage best suits your needs.
Do you have more questions about choosing a cyber liability insurance policy? Contact our Atlanta team of insurance administrators
to get help today.