The Role of Cyber Liability Insurance in Protecting Your Business

In the digital era, businesses and their clients are consistently under threat of cyberattacks and data breaches. This unfortunate reality has forced many companies to revisit and revamp their risk management efforts. Fortunately, securing an appropriate cyber liability insurance policy can help your organization address the financial ramifications of these incidents.

What Is Cyber Liability Insurance?

Also known as cyber insurance, these policies are an increasingly common and essential loss control measure for many businesses, regardless of size or sector. Modern workplaces across many industries have become dependent on technology and online solutions, which may exchange efficiency and innovation for more significant cyber risks and exposures. This changing risk profile necessitates adjusting insurance portfolios to include the coverage available through cyber liability policies.

How Can My Policy Help Protect My Business?

You should first understand that cyber liability insurance does not typically offer any direct protection against data breaches and other incidents. Like other types of insurance, these policies are instead focused on helping you manage the financial ramifications and aftermath of covered incidents, such as phishing and ransomware attacks.

After a covered cyber incident, you can submit a claim against your policy. If approved, resulting payouts may help cover the following:

• Costs for notifying affected parties, such as your clients and customers

• Lost revenue and other losses related to delays and network disruptions

• Noncompliance fines

• Public relations firm and crisis management team fees

• Legal expenses, including attorney fees, settlements and judgments arising from lawsuits

Who Needs Coverage?

Although cyber liability insurance is not typically required by law, certain companies may be beholden to industry standards and regulatory mandates. Even without such obligations, any business that stores, transmits or otherwise works with sensitive data should prioritize this type of coverage. A suitable policy can guard your company’s financial interests and reputation, potentially blunting the fiscal impacts of incidents that might otherwise incur extensive out-of-pocket losses.

We’re Here to Help

Contact Hunkins & Eaton Insurance Agency in Littleton, New Hampshire, today to learn more about cyber liability coverage or get a free quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.