Today, Cyber Insurance is a Necessity

Cyber insurance is like any other type of business liability insurance; it is specifically designed to help your business recover after you and your business experience a damaging cyber attack and/or a data breach.

Anyone who operates even a portion of their business online or is entrusted by his or her customers with information through a third party needs cyber insurance.

Cyber insurance covers your first and third-party risks. 'First-party risks' refers to the policyholder's losses and 'third-party risks' refers to the costs and losses associated with any litigious claims veiled upon you by your customers or other third parties.

The cost of cyber insurance will depend primarily on the number & types of sensitive records your company accepts, stores, and/or transmits; your company's industry type; your company's annual revenue, and the desired limit of liability coverage. On average, you can expect to pay between $750 on the low end and up to $8,000 on the high end.

While you may have business liability insurance, you more likely than not, do not have cyber insurance. As of right now, standard general & professional liability insurance policies lack provisions for cyber even though most, if not all, business today is done online.

Without cyber insurance, you are solely responsible for the financial costs & losses resulting from cyber-attacks and/or data breaches, including but not limited to: forensic investigations, public relations, customer notification and identity protection. Additionally, if your customers decide to pursue legal action against you, you would be responsible for all the defense and settlement costs.