Navigating the Future: How AI is Transforming Insurance
Cyber Insurance
Cyber Liability Insurance for Today’s Risks
Cyber incidents are a threat to your business. Secure the insurance protection you need
Why Your Business Needs Protection Against Modern Cyber Risks
The FBI’s Internet Crime Complaint Center (IC3) says that America has experienced an unprecedented increase in cyberattacks and malicious cyber activity. In 2021, ransomware attacks nearly doubled, according to NCC Group.
#1: A single attack can devastate a business
Because many essential business functions depend on computer systems, an attack can lead to downtime and lost revenue. Businesses may feel forced to pay expensive ransoms, and they may spend more money investigating the attack, complying with the ever-growing list of data breach notification laws, recovering data, and securing the compromised system. Regulatory penalties and lawsuits can add to the total costs.
According to the 2021 IBM Cost of a Data Breach Report, the average cost of a data breach is $4.25 million, and the average cost of a ransomware breach is $4.62 million. (these facts could be shown as callouts)
#2: Your other insurance policies might not cover your losses
Standard property, general liability, and crime insurance policies may not provide adequate coverage for cyber risks. Many of these policies include exclusions and limitations that reduce the coverage available after a cyber incident.
Cyber liability is a specialized risk, and to cover it fully, you need specialized cyber insurance.
#3: Cyber incident response planning can help your business survive
Robust planning can help businesses survive disasters, and this is true whether we’re talking about a natural disaster or a cyber disaster. A good cyber response plan is especially important now, both because of the surge in cyberattacks and because of new data breach regulations.
According to the NCSL, all 50 states, the District of Columbia, Guam, Puerto Rico, and the Virgin Islands have laws that require private businesses to notify individuals when their personally identifiable information has been exposed in a breach.
Don’t wait until an incident occurs. Start planning now!
Make Cyber Liability Insurance Part of Your Cyber Risk Management Plan.
Cyber liability insurance can help cover the costs associated with a cyber incident. However, cyber insurance does more than that. Your policy can also give you access to cyber incident response experts, including IT forensics specialists and public relations advisors, to help you protect your business’s reputation and bottom line.
Heffernan Insurance Brokers maintains a cyber risk team that has expertise in determining your exposure, can shop the market, present your options, and guide you in the selection of coverage that meets your company’s needs.
Frequently Asked Questions
Explore key questions about Cyber Insurance.
What is Cyber Insurance?
Cyber insurance is specialized coverage designed to protect businesses from financial losses due to cybersecurity breaches and data breaches. It typically covers costs for data recovery, legal fees, notification expenses, and business interruption. Additionally, it may include cyber liability insurance coverage for claims arising from the loss of sensitive customer information, helping businesses recover quickly from cyber incidents.
What Does Cyber Insurance Cover?
Cybersecurity insurance coverage includes protection against risks from cyber attacks and data breaches. It generally covers data recovery, legal fees, notification expenses, and business interruption losses. Additionally, it offers cyber liability coverage for claims related to the loss of sensitive data and potential regulatory fines.
Who Needs Cyber Insurance?
Cyber insurance is essential for any business handling sensitive customer information, relying on digital operations, or storing data electronically. This includes industries like healthcare, finance, retail, technology, as well as small businesses and large corporations.
What Are the Costs of Cyber Insurance?
The cost of cyber risk insurance varies based on business size, industry, data sensitivity, and coverage limits. Premiums typically range from a few hundred to several thousand dollars annually, with higher-risk industries like healthcare and finance incurring higher costs. A company’s network security measures and claims history also influence pricing.
How Do I Get Cyber Insurance?
To get cybersecurity insurance, assess your business’s specific risks, including data types and cybersecurity measures. Obtain quotes from multiple providers to compare options and premiums. Work with an experienced insurance broker specializing in cyber insurance to tailor a policy that fits your needs, ensuring it includes essential coverages like data breach response, business interruption, and liability for data loss.
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