Cyber Liability Insurance

Just as the holiday shopping season was about to begin, the Rokenbok toy company was in the middle of a business nightmare.

Online criminals from outside the country had encrypted the company’s files, demanding a hefty ransom to unlock the data. The company was losing thousands in missed orders by the day.

Worse yet, this cyber attack wasn’t Rokenbok’s first: earlier that year the company had been hit with a denial of service attack, shutting down their website.

“I sweated that one,” said CEO, Paul Eichen, in an interview with the New York Times. “Customers’ first impressions are critical.”

It took four days to reconstruct the data and the hackers were never caught.

Just like many businesses, your company probably uses computers to send, receive, or store electronic data. These electronic data might contain sales projections, tax records, and other sensitive information that are owned by your business. If there comes a time that the data is lost, stolen, or damaged due to a security breach, it could be very expensive to replace or restore.

What’s more, your computer system might also store some sensitive data that belongs to other parties such as your customers, employees, or vendors. Once the data is lost or taken by a hacker, the owners might sue your business for damages. Your company might incur significant expenses.

In reality, virtual states have actual laws requiring businesses to inform individuals once their data gets compromised in a data breach. You can protect your firm against these expenses associated with data breaches by availing of a cyber liability policy.

Your firm can be protected against these expenses associated with data breaches by getting cyber liability policy

What is Cyber Liability Insurance?

Cyber liability insurance is an insurance policy that provides businesses like you with a mix of coverage options to help safeguard your company against data breaches and other cybercrimes. This is essential for all companies since it’s not a question of your organization will suffer such a state but when.

This kind of insurance will cover your financial losses that led to data breaches and other cyber events. Most cyber policies have both first-party and third-party coverages. Some of these coverages can be availed automatically while others are bought separately.

First-party coverages will pay expenses your business directly suffer as a result of the breach such as the expenses of informing your customers about a hacker attack. Meanwhile, third-party coverages are for claims against your business by other parties or companies that have been affected as a result of your actions or your failure to solve the issue. One example is when a client sues you for negligence after a certain hacker steals their personal data from your system and releases it publicly on the web.

Cyber liability is a question of “WHEN” not “IF”

Data drives the organizations of today’s world. Businesses of all sizes have had a cyber-attack or data breach, with the average cost to rectify rising to$6.5 million per occurrence.

One stolen laptop, one careless employee, a virus, or even paper records that fall into the wrong hands, can create a financial and reputational consequence affecting your business for years to come.

Who Needs Cyber Liability Insurance?

Every kind of business, firm, or organization needs cyber liability insurance for the safety of their data. This can range from global companies and small businesses that use technology to handle their business and who might face cyber risks. Cyber threats become more and more complicated as technology becomes even more complex too. This is why every business, firm, or organization needs to be prepared with having both cyber liability insurance and also have a working cybersecurity plan to manage and lessen cyber risks.

Cyber liability is a question of “WHEN” not “IF”

Data drives the organizations of today’s world. Businesses of all sizes have had a cyber-attack or data breach, with the average cost to rectify rising to$6.5 million per occurrence.

One stolen laptop, one careless employee, a virus, or even paper records that fall into the wrong hands, can create a financial and reputational consequence affecting your business for years to come.

What does Cyber Liability cover?

With a comprehensive cyber liability policy, you can feel confident you’re covered in case of data breaches and related issues, including:

  • Data compromise protection to cover employee and customer information if your data should ever be hacked, stolen (physical and electronic), corrupted, or subject to procedural errors or internal fraud
  • Legal cost protection incurred by legal reviews
  • Forensic services to assist in determining the nature, extent, and perpetrators of an electronic breach
  • Personal services for any persons affected, which may include helpline services, credit monitoring, and case managers for identifying theft victims.
  • Public relations costs paid for firms to review and respond to the potential impact of the data compromise
  • Costs of legal defense in an event that the company gets sued due to the breach
    Identity recovery protection to identity fraud victims and restore their credit history and records. This includes owners, employees, and family members.

We can help protect your business against damage to electronic data, virus or malware attack, liability to third parties, and also help recover the cost of:

  • Restoring and recreating data to your system
  • Restoring systems to pre-attack levels
  • Lost business and unforeseen expenses
  • Public relations services, to communicate with outside parties concerning a computer attack and your public response

First Party Coverages You May Need to Acquire

Here are some kinds of first-party coverages you are likely to see in a cyber liability policy. These coverages may be, of course, subject to a deductible.

  • Loss or damage to electronic data – this covers the expenses to replace or restore electronic data or programs which are damaged, destroyed, or stolen in a data breach. It doesn’t matter whether the data belongs to your business or to another party. Furthermore, losses may also occur from a covered peril such as a hacker attack, a virus, or a denial of service attack. Your insurance policies may also cover the expenses of hiring experts or consultants who may help preserve or reconstruct the lost data.
  • Loss of income and extra expenses – this covers income losses you may suffer and also extra expenses you may have in order to avoid or minimize a shutdown of your business after your computer system suffers a failure due to a covered peril. Some insurance policies may cover dependent income losses. These may be income losses you may get when your network provider’s system has been breached.
  • Cyber extortion – This happens when a hacker threatens to damage your data, insert a virus, initiate a denial of service attack, or release confidential data, and then demands a specified sum. The coverage for this policy extends to any extortion payment you make and the expenses you may incur in responding to the hacker’s demand.
  • Notification costs – this covers the expenses of notifying parties affected by a data breach; be it voluntarily or as required by law. This may also cover the expenses of also offering credit monitoring services and establishing a call center.
  • Damage to your reputation – this insurance coverage may be called “Crisis Management” since some policies may cover the expenses you incur for marketing and public relations in order to protect your company’s reputation when a data breach occurs.

Who is cyber liability insurance for?

Cyber liability coverage is available for any business, small and large, nonprofit organizations, and retailers. You may be able to save costs by bundling coverage with another policy to create a comprehensive suite of business liability coverages.

We can help you assess the risks to your business, and get you the protection you need in today’s data reliant world.

Why We’re Different

You may think you want the cheapest insurance you can find, but realize you may not be getting everything you bargained for…

While most insurance products are similar in price and function, insurance providers are very different when it comes to structuring a policy that actually covers you.

There’s no such thing as a one-size-fits-all insurance policy when it comes to your business.

We’re your neighbors. We protect businesses and people we know and care about, and that means we always look for ways to protect you better, including carefully choosing the insurance companies we represent to be both affordable and responsive.

Contact us and let the professionals at our company help you forge the strongest shield possible to help you protect the things you are working hard to build.

(720) 221-8168

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Explore and learn more about some unique risks as well as the related insurance solutions

Cyber Liability Insurance Clickable
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Cyber Liability Coverage

Possible Liability: When stored financial and personal identifiable information that may be stolen or mishandled by your company. Some companies may also be required, by law, to inform and compensate clients for any data breach that causes financial loss.

Solution: Policies can now protect your company from unauthorized access to software or data in your network. It also protects you from malicious acts or negligence whether intentional or otherwise.

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Ransom/Extortion

Possible Liability: Ransom demands made by hackers to avoid further damage to the business.

Solution: May have a sub-limit and deductible. The insurer may have a set of conditions that need to be met. Check with your agent to make sure if this is possibly part of the policy or may be added.

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First-Party Coverage

Possible Liability: Expenses for crisis management, digital forensic analysis, repair and restoration of the company’s computer system, loss of income, and hiring a firm to handle the entire data breach or cyber-attack incident.

Solution: Protection from financial losses and have available funding until operations can be resumed as normal.

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Third-Party Coverage

Possible Liability: Threat from lawsuits in case of any data breach caused by negligence or mishandling of information by your business.

Solution: Protection in the event of a lawsuit from a data breach where your business would be responsible for paying legal fees, court judgments, settlements, or any other expenses related to legal proceedings.

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Business Interruption and Income

Possible Liability: When a business is compromised by an email virus or a hacker rendering your company’s operations to halt and unable to generate revenue.

Solution: Coverage for any business interruption due to a cyber attack under your commercial property insurance policy can be made. Another policy coverage is for the lost revenue due to being unoperational.

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Regulatory Claims

Possible Liability: Fines incurred when your company is in violation of state or federal privacy laws when a data breach or cyber attack happens during regular business hours

Solution: This coverage varies and may be restricted by state law, so it is best to check with your agent for options.

DISCLAIMER: Consult actual policy for exact terms and conditions or talk to your insurance agent for clarifications.

Contact Us

Address: 4380 South Syracuse St. Suite 310 Denver, CO 80237
Email: info@teamais.net
Main Line: (720) 221-8168
Toll-Free: (877) 658-2472
Fax: (720) 221-6787
New Customer Lines: (855) 973-1202
(855) 712-6584

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