As technology becomes a key factor in business operations across industry lines, no organisation is immune to the risk of cyber-attack. To protect your business from the numerous consequences of a data breach, it’s vital to have a robust cyber-liability insurance policy in place.
At a glance, cyber-liability insurance offers cover for losses that result from any cyber-related incident within your organisation. Typically, cyber-liability policies include both first-party and third-party cover. Have a look at the following key features of cyber-liability insurance:
This form of cover offers protection for any losses that your organisation directly incurs from a cyber-incident, including:
- The cost of replacing or restoring any lost, stolen or damaged electronic data
- Income losses and extra expenses that result from disrupted business operations
- Ransom payment from a cyber-extortion incident
- The cost of notifying any parties affected by a cyber incident
- Reputation preservation expenses (eg any public relations efforts following a cyber-incident).
This form of cover provides protection for claims made or legal action taken against your organisation by any stakeholders that suffered losses due to your company’s cyber-security failings, including:
- Claims regarding negligent acts, errors or omissions that caused a cyber incident
- Legal investigation and defence costs that result from a cyber-incident
- Regulatory fines or penalties due to non-compliance with data protection laws.
© 2020 Zywave, Inc. All rights reserved. This publication is for informational purposes only. It is not intended to be exhaustive nor should any discussion or opinions be construed as compliance or legal advice. In relation to any particular problem which they may have, readers are advised to seek specific advice. Further, the law may have changed since first publication and the reader is cautioned accordingly.