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Why Cyber Liability Insurance?

Cyber-crimes is quickly becoming the #1 crime in the world. (In 2018, 16,128 cases of online identity theft and 65,116 cases of non-payment or non-delivery fraud were reported to the U.S. Internet Crime Complaint Center.) Cyber security insurance protects your business against attacks targeting confidential material. You’re vulnerable if your company has employees or handles sensitive client information. 

Hackers are becoming bolder and cyber attacks getting more frequent every year. Business owners must take control of their computer security and protect themselves. Cyber insurance provides small businesses the coverage they need to protect data.

You need cyber insurance if your business:

  • Accepts credit cards or other digital payment types

  • Uses computers and mobile devices

  • Stores confidential customer information

  • Keeps medical or financial data

What could Cyber Security Insurance cover?

A cyber insurance policy is designed to cover data, privacy, and network exposures, to offer your computers security solutions to give you peace of mind. Since cyber security is one of the fastest growing and changing risks in the world today, both cyber novices and smart & tech-savvy business owners can feel protected with a policy that protects against data breaches, hacks, and other types of cyber security events.

The list of regulations and statutes keeps expanding in regard to the use and protection of cyber security information, as well as notification requirements in the event of a breach. As cyber exposures continue evolving, so will your need to ensure that your business is protected if a cyber attack occurs.

Sample claims scenarios:

Cyber insurance offers broad coverage designed to protect businesses like yours. Here are some examples of what could go wrong and how it could be covered:

  • Ransomware: You or one of your employees clicks on a link from an email or web page that came from what appeared to be a trusted source. Your company’s data is locked and held for ransom. The message was from an experienced hacker and contains malware. A cyber policy could cover the cost of expert assistance to determine if the threat is real and if so negotiate, and facilitate payment of a ransom.

  • Social Engineering: Cyber-criminals use emails that may be 1 letter or 1 number off to appear at quick glance to be from a trusted source.

    • Example: In your haste to get things done you receive an email from your boss telling you to submit payment to to vendor. You do so but soon realize that the email wasn’t from your boss at all and that vendor was a cyber-criminal that now has your companies money.

    • Since you willingly gave away the money the police won’t be able to help you. Coverage on a cyber-security policy will cover the loss of money.

  • Stolen laptop: A thief steals your laptop, containing sensitive client information from your vehicle. A cyber policy could cover the costs you incur to notify your clients of the data breach, including identity protection and credit monitoring services and legal costs.

  • Data recovery: Your company’s server was compromised by a former employee. You have lost all access to your company’s data and the data could potentially be destroyed. A cyber insurance policy could protect your business and provide coverage for the costs to replace, restore, repair, or regain access to your data following a breach. 

How could Cyber Insurance help after a cyber attack?

  • Data breach response: Covers the cost of computer forensics, the notification of those affected, call center support for those affected, identity protection services, and crisis management and public relations support.

  • Cyber extortion: Covers the cost of expert assistance and ransom payment.

  • Data recovery: Covers the cost to replace, restore, repair, or regain access to your data after a data breach, security failure or extortion threat.

  • Cyber crime: Insurance for the loss of money from your financial account due to fraudulent instruction by a third party.

  • System failure business interruption: Insurance for losses sustained due to the total or partial interruption of your business as a result of any unintentional or unplanned outage of your computer system not caused by a data breach or security failure.

  • Dependent business interruption: Insurance for losses sustained due to the total or partial interruption of your business as a result of a data breach, security failure or extortion threat at an outsourced business process or IT services supplier which you depend on to operate your business.

  • Cyber deception: Insurance for the loss of money as a result of the a social engineering or phishing attack against you which results in your voluntary transfer of money to an unintended third party.

  • Media liability: Insurance for claims made against you that arise from the content of your website, social media and other promotional material.

  • Cyber deception: Insurance for the loss of money as a result of the a social engineering or phishing attack against you which results in your voluntary transfer of money to an unintended third party.

  • Media liability: Insurance for claims made against you that arise from the content of your website, social media and other promotional material.

To learn more about cyber security and how the Arnold Insurance Agency can build you a plan give us a call today! 614-863-0455