Cyber Liability Insurance

In the modern digital era, cyber threats and cybercriminals pose significant risks to organizations of all sizes and sectors. Sensitive data and private information are commonly stored, transferred and managed by many businesses, and even a single data breach or other cyber incident could have devastating financial consequences. With this in mind, cyber liability insurance emerges as a potentially critical loss control measure. 

What Is Cyber Liability Insurance? 

As its name suggests, cyber liability insurance focuses on financially safeguarding your company’s financial interests following cyber incidents that might otherwise incur significant losses and expenses. These policies establish a contractual agreement between you and your insurance company; as long as your coverage remains active, you can retain access to funds and resources that may absolve you of catastrophic out-of-pocket costs.  

What Does Cyber Liability Insurance Cover? 

Cyber liability insurance can provide versatile financial protection for your organization by helping to pay for losses and expenses arising from cyber incidents, such as phishing attacks, malware infections and social engineering scams. While the exact capabilities and limitations of your policy may vary, the following are often covered: 

• Breach response costs—This may include expenses related to investigating the incident and notifying parties whose information may have been exposed, such as customers and vendors.
• Hiring help—If a cyber incident demands that your organization enlists additional help, such as credit and fraud monitoring services, IT contractors or a public relations firm, your insurance may help cover costs.
• Business interruption losses—This part of your cyber liability insurance policy may help you recoup lost income if a cyber incident delays or disrupts your normal operations.
• Data restoration—This coverage may provide financial assistance to restore compromised data or systems.
• Ransomware payments—Cybercriminals may use ransomware to extort your organization, but your insurance may help pay for you to meet their demands. 
• Legal costs—If a cyber incident leads to noncompliance fines issued by regulatory bodies or lawsuits filed by affected parties, this coverage may help pay for resulting losses and expenses. 

Get the Right Coverage 

With nearly two decades of experience serving businesses, families and individuals, the dedicated staff at Maranatha Tax & Insurance Agency is well-equipped to help your company assess and address its cyber liability coverage needs. Contact us today to get a personalized quote or learn more.