A general liability policy will contain basic cyber liability coverage. Most business that store personally identifiable information for employees or customers shave have stand-alone or enhanced cyber liability protection. In today’s age, it is not just large corporations that are susceptible to viruses or being hacked, but 55% of small businesses have experienced a data breach and 53% have had multiple breaches. This all puts not only your hardware at risk, but also your business’s reputation while putting your customers and employees information at risk.
This coverage pays for immediate expenses that a company incurs after a cyber breach. This includes:
- Cost of notifying employees and the public
- Repairing any damaged software or hardware
- Protecting the company’s reputation with a marketing and public relations response
- Business interruption costs and missed income while business operations are suspended
- Extortion money (used to appease a hacker who threatens your data or systems unless you pay them a ransom)
- Other ancillary costs, such as paying for credit monitoring for customers
This coverage helps the company defend against lawsuits and legal claims. This includes:
- Privacy lawsuits claiming that you breached the privacy of customers or employees
- Fines from regulatory bodies
- Media liability claims, such as copyright infringement, libel, or slander.
- Breach of contract or negligence claims
On top of first- and third-party coverage, some insurance companies also provide risk mitigation services to help you identify and avoid cyber threats before they happen. After a breach has occurred, some insurers will set up a hotline that customers and members of the public can call to get more information.