You know that your business needs a cyber liability policy, but trying to understand what will and won’t be covered can be as challenging for some small business owners as trying to complete the application. So, when looking for a policy that fits your needs, what are some key coverages that you should focus on? The first thing that you will need to do is to assess what your risks are and then make sure that you find a policy that has coverages that will protect you for those risks.
If a possibility of a breach is one of your concerns, look for the following coverages:
- Forensic expenses – these are the expenses associated with investigating a threat or breach. This includes hiring professionals such as a forensic accountant or an IT professional.
- Legal expenses – In the event of a data leak, you may incur lawsuits brought by customers.
- Notification expenses – In the event of a breach, you will have to notify customers and this can get very expensive, very quickly.
- Credit monitoring and ID theft repair – for the customers that were impacted by your breach, you will need to provide these services for a specified period of time.
If a possibility of a cyberattack is one of your concerns, loos for the following coverages:
- Data restoration – This provides coverage to help recover the lost data as well as providing services to find the data that is necessary to determine how the cyberattack happened.
- Third-party systems – Did your cyberattack spread to a third party where they also experienced losses? If so, then you may have lawsuits brought against you for damages and this is where the coverage would be found.
- Public Relations – If you are a victim of a cyberattack, not only will you need to clean up your system, but you will also need to clean up your reputation. This coverage pays for a public relations firm to repair your company’s reputation.
- Cyber Extortion – How much will the carrier pay in the event that your data is held for ransom.
Other specifics to look for in a cyber liability policy include:
- The types of cyber incidents that are covered.
- The maximum amount of money the insurance company will pay for covered losses.
- How much you will have to pay out of pocket before the insurance company begins to pay.
- What types of data are not covered.
If you’re not sure what your risks are, contact us so that we can talk with you to help you out. We have focused on Cyber for almost twenty years and have watched cyber criminals develop their tactics, methods, and skills.