What is cyber insurance?

Risk Channels Insurance Podcast

Cyber insurance can help restore employee and customer identities, recover compromised data and repair damaged computers and networks, whether your business is the victim of a data breach, password attack, ransomware or phishing attack.
You could be at risk for a cyber attack. A staggering number of small and medium-sized organizations get attacked each year — many without the support of cyber insurance coverage. And if your systems or data are compromised, it can put you out of business or cause a significant financial loss.

Any business that stores data on a network is at risk for a cyber attack. Data privacy attacks now occur every 40 seconds in the U.S.

Without cyber insurance, you could be on the hook for state and federal fines and penalties, a forensic investigation, breach notification costs and even a class action or third-party lawsuit down the road — all hits on your balance sheet.

Cyber insurance covers the following first-party and post-breach expenses:

• Privacy attorney
• IT forensic investigation
• Compliance with state notification laws
• Credit monitoring for breached individuals
• PR firm to manage the crisis
• Regulatory fines
• Class action lawsuits resulting from the breach

When a cyber attack occurs, recovering your data is just one part of the puzzle.

Cyber insurance covers the expense of hiring experts to defend and get you up and running and for lost income due to service outages. Most importantly, NONE of this is covered by your commercial general liability or business operator policies.