“What is Cyber Liability Insurance? And is it something I need for my business?”
The cyber world of the internet, databases, data, and information can be an overwhelming place when it comes to your business’ liability. Your business relies and thrives on information – usernames, passwords, date of births, social security numbers, email addresses, and much more. But what happens when all of that disappears – or worse, is stolen?
Watch the video below to understand more about what cyber liability insurance coverage is and HOW it can help protect your business from losing $$$.
What is Cyber Liability?
Cyber liability insurance coverage covers financial losses that result from data breaches and other cyber-related events.
There are two types of Cyber Liability policies (explained below):
- First Party Coverage
- Third Party Coverage
First Party Coverage – Cyber Liability
First party cyber liability coverage is for losses sustained internally in your business. For example if there is damage to your files, data or your computers, cyber liability insurance would cover that. If you were extorted or had your servers attacked, any cost related to fixing or finding a solution can be built in to the policy.
So if you lose income or have extra expenses finding a remedy to the issue, first party coverage for cyber liability would help cover those costs.
Third Party Coverage – Cyber Liability
Third party cyber liability coverage is for claims other individuals or businesses have made who have been damaged by the results of your actions or the data breach that has occurred. So this would be under the network security liability – liabilities for personal information you carry.
If you expose private information – such as dates of birth, social security numbers, driver’s license numbers, banking information, credit card information – the cost of
The important thing to know is that the average cost to remedy a breach is about two hundred dollars per record.
The average cost to remedy a data breach is about $200 per individual record.
Who needs Cyber Liability Insurance?
We recommend Cyber Liability Insurance coverage for almost any business that deals with personal records. In the modern world, that covers pretty much every business out there.
For example, doctor’s offices, medical offices, lawyers or attorneys (to name a few) would most certainly need cyber liability coverage. Accounting or CPA professionals could need more depending on the type of information or data you collect and analyze.
What does YOUR business need?
So what do you need? The answer depends on what type of information you take in from your customers or clients.
The best thing you can do is have a brief conversation with us to determine what your customized needs are. We custom build each coverage to fit your specific cyber liability needs.
Click here for the video transcript
What is Cyber Liability and Do I Need it for my Business? [Edited].mp4
Zach Bartness [00:00:00] Hey there – Zach Bartness with Shared Alliance Insurance here to talk to you today about what is Cyber Liability insurance and do I need it. So, first of all, Cyber Liability Insurance is coverage for financial losses that occur from some sort of data breach that your business may have. It’s going to cover first and third party damages and some other things that are built in depending on the policy. So what kind of policies are available there?
Zach Bartness [00:00:28] First party coverage like we said. This is cover for losses sustained that you have internally in your business if there’s damage to your files or your computers or things like that, damage to the data – those are built in. If you were extorted any sort of cost to try to remedy that can be built and it just depends on the one product that you have. And if there’s loss of income or things of extra expenses that occurred because you can’t operate while this breach is occurring and remedying it, there’s coverage available for that depending on the policy you purchase.
Zach Bartness [00:01:04] There’s also third party coverage. This is coverage for other people so if there’s a claim made to your company by people or a business who have been damaged by the results of your actions or the breach that has occurred there’s coverages for that. So this is going to be the network security liability – liabilities from a breach in that. If you expose private information: that can be dates of birth, social security numbers, driver’s license numbers, banking information, credit card information; all sorts of things of that nature are addressed there. The big thing to know is that the average cost to remedy a breach is about two hundred dollars per record. So you can kind of extrapolate out that number based on the size of your business and the number of records you have as to what sort of liability limits you need. And then also – a good thing to know – is that six months after a small business has been breached about 50 percent of them go out of business. So a little bit of money into this sort of insurance policy can prevent business from going under. And the ability for an owner to operate and make a living or pass it down to a family member or sell it for retirement all sorts of things that can come up by not having something like this in place; we can prevent with this in place.
Zach Bartness [00:02:30] So what do you need to get? What does your business need? Really that’s just a conversation we need to have with you. Call me – let me talk to you. Let my staff talk to you. We’re happy to educate you and determine the needs of your business. Almost all businesses could probably use some Cyber Liability in some capacity: for example doctor’s offices, medical offices, or law offices, accounting offices could need more depending on the information you have, insurance offices need a lot of coverage but just depends on your business. So let’s have a conversation, let’s talk though, let’s let’s determine your needs and educate you and your staff on what you need to do on handling private information. What you’re doing on a day to day basis because most breaches occur due to employee error or just something very simple that they obviously did not intend to do. So give us a call! I appreciate you listening in. Give me a call 864-609-5550 or go to our website www.sharedalliance.com and we’ll be happy to talk to you. Thanks.