What Is Cyber Liability Insurance?
Cyber liability insurance protects your business from financial losses, disruption and reputation damage. It protects you when there is a system failure, or your IT system is under attack.
Whether you are a corporation, regional enterprise, local or home-based business, threats are very real.
If criminals hack your network, hold your website hostage, or steal confidential information, you’re liable. You will have to pay recovery costs. You are at danger of legal action from other parties that are affected.
It can be confusing for organizations to understand the type of protection they require. Our experts work with you to understand the threats to your business. We’ll help you get a policy to protect your company from these vulnerabilities.
Does Your Business Need Cyber Insurance?
Many businesses assume they do not require cyber insurance. The truth is that any business could be the victim of an online attack. Not just businesses in the IT field. You need it if you handle sensitive information. This includes :
- Payment information (credit card numbers, bank account information)
- Customer information (name, email, phone, address)
- Medical records
- Financial records
- Government documentation (SIN, driver’s license, health card numbers)
- Business and trade secrets
Do you store any of this information in a digital format? Do you house this on an internal database or server? If you use computers to run your business, you have exposure.
Cyber Insurance Will Protect You If Compromised
Cyber insurance can’t prevent a cybercrime or risk from occurring. But, it will help your business post-attack by maintaining your financial stability. It provides financial and legal protection if you’re compromised.
Kim Lindros and Ed Tittel from cio.com says :
"A cyber insurance policy, also referred to as cyber risk insurance or cyber liability insurance coverage (CLIC), is designed to help an organization mitigate risk exposure by offsetting costs involved with recovery after a cyber-related security hack or similar event. With its roots in errors and omissions (E&O) insurance, cyber insurance began catching on in 2005."