What is Cyber Liability?
Cyber Liability is coverage for your business’ liability when there is a data breach involving sensitive information such as driver’s license, health records, Social Security numbers, personal contact information, and credit card and account numbers. It can also include coverage for false invoices paid or fraudulent wire transfers committed by a third party.
Whom does it protect?
It protects your business from legal fees and expenses that may occur once the data breach has been identified. Certain policies can also make you whole again in the event of an illegal transfer from your accounts.
When do I need Cyber Liability for my business?
Technically every brand with a digital presence should carry Cyber Liability coverage. However, it is most important if you collect any sensitive customer data, frequently bank online where multiple individuals within your business have access to accounts, and if you accept electronic invoices regularly.
What are the risks if I don’t have appropriate Cyber Liability Coverage?
There are many out-of-pocket costs for not carrying Cyber Liability insurance. You could be at risk of litigation fees, fees for identifying and fixing the data breach, lost capital resulting from paying to recover stolen data, and lost funds from falsified invoices and wire requests.
How often should I review my Cyber Liability coverage?
You should review your cyber liability insurance once a year to ensure you have the appropriate level of protection based on your business assets and revenue.