Cyber Risk Insurance Coverage: What Minimum Do You Need?

No matter what type of business you run, it’s important to have cyber risk insurance coverage. Nobody is safe from cyber attacks these days. This insurance can help businesses avoid financial ruin by covering the costs involved with recovery after a security breach.

What Does Cyber Risk Insurance Typically Cover?

While cyber liability insurance can differ depending on the provider, it normally covers costs related to first parties and claims made by third parties. Let’s take a look at the costs cyber risk insurance covers:

  • Investigation: In order to find out why the cyber attack happened and how to prevent it in the future, a forensic investigation is needed.
  • Privacy and notification: If customers or other parties were affected by this security breach, they will be notified immediately and offered credit monitoring.
  • Business losses: Cyber attacks protection may also cover any business losses related to the cyber attack, such as network downtime and reputation damage.
  • Lawsuits: Cyber insurance may also cover legal expenses if customers bring lawsuits against your company for releasing their confidential information.

Business Liability Insurance isn’t Enough

If you have standard business liability insurance, you may think that you don’t need cyber risk insurance coverage. Unfortunately, a business liability insurance doesn’t cover cyber attacks. The insurance company that provides your business liability insurance may offer cyber liability insurance, so you will want to speak to your insurance agent about that.

To protect your company against major losses, it’s critical to hold at least a basic cyber liability insurance policy. If you aren’t covered, your organization will be entirely responsible for the costs associated with a data breach, including loss of business and lawsuits from customers.

Hotwire Insurance protects you against cyber crime costs.

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