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Cyber Liability and Ransomware: What Is It & Why Is It Important?

Published by Robert J Stillwell on June 19, 2019

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What is Cyber Liability?

Cyber liability policies cover a business’ liability for a data breach in which the customers’ personal information is stolen by an unauthorized individual who has obtained access to your business’ network. Some examples of personal information are social security number, banking information, credit card numbers, dates of birth, etc.

Do you know businesses that do not have access to some piece of their clients’ personal information? Does your business accept credit card payments?

We live in a digital world, one that is a hacker’s playground. If your business should be breached regulatory laws require that each violated customer be notified and provided credit monitoring at the expense of the company. This not only results in expenses but also damages the reputation.

What Does a Cyber Liability Policy Cover?

Cyber liability is a vital coverage to protect you from this risk. These policies offer a variety of coverage that protect you from claims involving a data breach, such as defense of regulatory proceedings, fines and penalties, identity theft and credit monitoring as well as reputation restoration.

Depending on the severity of the breach, the costs to your business could be immense without the proper insurance. It does not matter if your business is big or small, anyone can be a target. Protect your business today.

Ransomware is becoming more and more prevalent in all types of industry. The specific risk is corruption of data files if the ransom is not paid. Policies that include coverage for those ransomware (whether right or wrong to pay the ransom) will provide a benefit amount to cover ransoms.

Most all cyber policies provide their insured a portal that assists in educating and measures to reduce your risk from cyber attack.

Want to learn how to secure your personal information? Download our checklist for securing your personal information here to discover the best practices.

If you are interested in discussing cyber liability coverage, please call us at 1-800-642-3490.

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