Cyber attacks are accelerating, but is your business protected from the damage that can occur? See how cyber liability insurance can mitigate the impact to your organization.
The statistics around cyberattacks are staggering, with over 1,200 data breaches that exposed 446.5 million records according to Statista. When you consider that the average cost of a data breach is $3.86 million, it’s not difficult to see why there’s been a dramatic increase in cyber liability insurance over the past few years. This specialized type of insurance will not completely absolve your organization from liability in the event of a data breach or other cyberattack, but it can help mitigate the negative impact on your business. While cyber liability insurance may help reduce the overall risk to your organization, it should be considered as part of your cybersecurity strategy and not a replacement for a robust security posture throughout your business.
Nick Allo who runs one of the best IT companies in Orlando shares his experiences.
What is Cyber Liability Insurance?
Organizations of all sizes need cyber liability insurance, and small businesses are just as prone to cyberattack as smaller businesses — perhaps even more so according to some studies. From expanded regulatory requirements to excessive hacking and ransomware attacks, this specialized insurance can keep your organization from falling under the oppressive costs associated with a cyberattack. There are no industries that are immune from attack, and there are serious business risks that must be considered when you’re analyzing whether you should reduce your risk.
What is Covered by Cyber Liability Insurance?
While it would be great to have a static list of what is — or is not — covered by cyber liability insurance, it’s not quite that easy. “Unlike many other more traditional lines of insurance, there is no standard policy form for cyber insurance. Each cyber insurer has its own policy form, utilizing its own, unique policy language. This creates challenges for companies trying to compare one cyber insurance policy with another”, notes Judy Selby, a cyber law expert and principal at Judy Selby Consulting, LLC. In general, expect to find two key options for cyber liability insurance:
- First-party Coverage. This type of cyber liability insurance helps cover the primary costs that your business incurs including customer notifications, damage repair for any software or hardware, paying for credit monitoring for customers, business interruptions and more.
- Third-party Coverage. In the aftermath of a cyberattack, it’s not unusual to have to handle privacy lawsuits brought by staff members or customers, compliance-related fines or other legal claims such as negligence.
Insurers may also help with coordination and communications that need to occur after an attack.
Cyber liability insurance is part of a growing suite of services that support businesses of all sizes and all industries. It’s vital that you accurately analyze and consider all the potential risk factors for your organization when you’re determining whether to obtain this type of insurance, and the professionals at SemTech IT Solutions can help. Your business success starts with a secure, reliable infrastructure and the experts at SemTech IT Solutions can help. We provide professional technical support for Lenovo computers, Microsoft Teams, Office 365, faxes, printers and other office machines. Contact us today at 407-329-5126 or you can request your free initial consultation online anytime. At SemTech, we believe in offering Orlando businesses the best and most proactive support and recommendations that will help protect your business and boost productivity.