Not all Cyber Liability Policies are Created Equally. Getting a Cyber Liability quote is free, there is no obligation and can be turned around in minutes.
Without having Cyber Liability Insurance
With Cyber Liability Insurance
The expense of your business being interrupted, regulatory fines, restoring your data etc… will be solely on you.
Cyber Liability Insurance Is Serious Business.
Unfortunately, data breaches and other cybercrimes are becoming way too common. In the past couple of years, data breaches have resulted in major fines and legal fees - not to mention headaches - for a discount retail chain, one of the nation's largest banks, a well-known health insurer, an entertainment network, and the federal government.
But it's not just large organizations that are susceptible to being hacked or getting a virus. Did you know that 55% of small businesses have experienced a data breach and that 53% have had multiple breaches?
As a business owner, it is your responsibility to be concerned about the privacy and security of the personally identifiable information (PII) you gather and keep on your business’ computers. That’s why it’s important to protect your business with Cyber Liability Insurance to help you respond to scenarios like:
Your business’ computers get a virus that exposes private, sensitive information
Customers or patients sue you after your business exposes their PII, PHI, or PCI.
You are faced with high public relations costs to help protect your brand reputation post-breach.
What Cyber Liability Insurance Covers
These are just a few areas in which a Cyber Liability Insurance policy will protect your business. Don't know what some of these mean? The Bunker can help.
Did You Know That Cyber Incidents are Typically Excluded on Most General Liability Policies?
General liability insurance covers bodily injuries and property damage resulting from your products, services or operations. Cyber insurance is often excluded from a general liability policy.
Cyber liability insurance is a specialized policy that is customized to cover many of the risks your business faces from an information breach. A number of action steps must be taken once your business has experienced a cyber hack. Some of these steps include:
- Notifying customers and clients of the breach (a legal requirement in most states, can cost approximately $200 per client)
- Dealing with ransom payments
- Paying regulatory fines or penalties
- Lost income to your business from a cyberattack
A true cyber liability insurance policy insurance policy provides coverage for both first party and third party claims that will cover breach notification costs, credit monitoring service costs, computer forensic costs, as well as crisis management and media liability coverage.
Cyber Liability Insurance FAQ
Cyber Liability is an insurance policy that helps cover the financial losses that result from data breaches and other cyber events.
Cyber liability insurance is not required by law, but some clients may require you to have it before they will hire you. This policy provides key coverage that could protect your business from bankruptcy if a client files a cyber liability lawsuit against your business.
Because of the high risk of data breaches and cyberattacks in the technology industry, every tech business should seriously consider purchasing cyber liability insurance.
There are two different types of cyber liability coverage: first-party and third-party. Most cyber liability insurance policies for tech businesses include both types of coverage.
First-party coverage can help pay for recovery from a data breach or cyberattack at your business. It covers paying ransoms, investigating the breach, and notifying customers. Third-party coverage offers protection if a client sues you for failing to prevent a data breach or cyberattack at their business.
The cost of cyber liability can vary depending on the nature of your business, how much PII your business gathers, stores, and transmits, and what limits you are looking for.
Here are a few of the factors that can impact your cyber liability insurance premium:
- Gross sales for the year
- Type of cyber exposure your business has
- Loss history
- Current cybersecurity hygiene
- Coverage / deductible chosen
- Pre & post services you are interested in
As with all insurances, price should never be the only reason you chose a policy over the other. Your goal should always be to maximize the coverage you need, identify coverage gaps, and make sure you're comfortable with the policy language of the carrier you have chosen.
Ask yourself these questions to see if your business needs Cyber Liability Insurance:
- Do we collect, store, send or receive PII, PHI, or PCI?
- Is the nature of our business one that has rules about customer information, such as healthcare, MSP, education or finance?
- How would we respond to a ransomware attack?
- Do we have the funds available to pay a ransom?
Cyber liability insurance is crucial in today’s business world, it is no longer optional. Getting hacked isn’t just a hassle. It also poses a potentially huge and unexpected cost to your business.