Cyber insurance has become a necessity for corporations and individuals just like any other insurance policy. Despite the growing popularity, choosing the right cyber insurance policy can be confusing. However, it is vital that companies and people figure out a way to defend themselves from cyber-attacks. Below, we talk about what you should look for when shopping for cyber liability insurance.
Understanding the Policy
Cyber insurance isn’t as generalized as other types of insurance coverage. Each company has unique policies and lists of coverage options. Although different options can be good for consumers, it also means that reading and understanding the policy you are interested in is very important. This is because there is no benchmark that can be used to help with your assessment. A professional insurance administrator can help walk you through the selection process and answer your questions or concerns about policy details.
Types of Coverage
- Privacy Liability: Covers liability if a company fails to protect personally identifiable or confidential corporate information in its custody or control, or by others on its behalf.
- Network Security Liability: Covers liability if a company’s network security doesn’t stop cyber-attacks like unauthorized access or unauthorized use of corporate systems, or fails to prevent the transmission of malicious code.
- First Party Coverages: Covers a company’s expenses that result from a data breach. This includes expenses for retaining a computer forensics firm, complying with privacy regulations, notifying and providing credit monitoring services to affected people, and legal /public relations management services.
Understand Your Specific Needs
The use of and dependence on data varies from company to company. Data held and used by financial or health care businesses are often valuable to criminals, while online merchants, might suffer greater losses if a cyber-attack crashes their website or interrupts services. Different policies have different limits, sub-limits, and exclusions for different kinds of losses. This is why it is important to get help from an insurance administrator who can identify exactly what you’re vulnerabilities are, and what type of coverage best suits your needs.
Do you have more questions about choosing a cyber liability insurance policy? Contact our Atlanta team of insurance administrators to get help today.