Cyber Liability Insurance 101
FOR IMMEDIATE RELEASE:
Contact: Amanda Edmunds
I & E Insurance Agency
What is Cyber Liability Coverage?
In this digital age, data breaches and other cybercrimes occur more frequently than ever. From large companies to small businesses, a data breach can happen to anyone! Cyber liability insurance covers any financial losses that occur due to data breaches and other cyber events. These policies vary but ultimately serve as the first line of defense in protecting your business, employees, customers, and reputation.
What Does Cyber Liability Cover?
Cyber liability insurance generally offers two different types of coverage: first-party and third-party. More generally, it includes a multitude of property and crime coverages and certain costs. All cyber liability insurance policies are claims-made.
First-party liability coverage pays for the immediate costs that a business incurs after a cyber breach. Most non-tech firms go for this coverage as it’s comprehensive enough to cover everyday risks. These first-party coverages are subject to a deductible and cover:
- Loss of damage to electronic data
- Loss of income or extra expenses
- Cyber extortion losses
- Notification costs
- Damage to your reputation
Many cyber policies offer more than one type of liability coverage. These generally apply to damages and settlements that result from covered claims, which includes the cost of your defense. Third-party coverages are subject to retention. Third-part coverage includes:
- Network security liability
- Network privacy liability
- Electronic media liability
- Errors and Omissions Liability
What Is Not Covered with Cyber Liability Insurance?
Cyber liability insurance does have so exclusions and limitations. Generally, they don’t cover potential future lost profits, the loss of value due to the theft of your intellectual property, and the cost to improve your internal systems following a breach.
What Factors Affect Cyber Liability Costs?
Cyber liability insurance costs anywhere from $500 to $50,000 or more per year. After determining your business’ needs, the team at I & E Insurance can best asses your requirements and find a policy that fits your budget without sacrificing your needs. There are a number of factors that affect the cost of cyber liability insurance like:
- Coverage limits
- Data access
- Security measures
More often than not, the cost of this insurance is higher due to the potential for a higher fallout. From containing the crisis, dealing with any PR damage, fixing hardware, recovering lost profits, and covering any legal claims there are a number of small fees that make the overall cost quite expensive.
A data breach can happen to anyone! I & E Insurance offers comprehensive cyber liability insurance coverage to small business owners located in the state of New Jersey. To learn more about our options for cyber liability insurance as well as the other services we offer businesses, visit our website or give us a call.