What Your Cyber Liability Insurance May Not Cover
Posted on: November 6, 2017 by Signature Insurance Group
Industry experts agree that cyber liability insurance is the key to surviving a cyber attack in today’s high-threat environment. With the cost of cyber attacks rising to over $450 billion per year, the potential losses are higher than ever. Meanwhile, CNBC reports that over 14 million businesses in the United States alone are at risk. Even more frighteningly, over half of small businesses have already been breached. From sole proprietors to global mega-corporations and everything in between, every business must have a cyber liability policy in place before disaster strikes—but not all policies are created equally.
Cyber liability insurance is a relative newcomer to the insurance market, making it an area that is rife with confusion and inexperience. In an effort to fit every unique business, many insurance companies offer a broad range of policies with pick-and-choose exclusions that can accidentally create major holes in coverage. Even retail giant Target found out the hard way that they were under-insured following their 2014 data breach.
A common cyber liability policy covers a limited subset of costs associated with cyber attacks, usually including the following:
- Legal Fees
- Credit Card Company Fines
- Government Fines
- Consumer Credit Monitoring
- Consumer Notification
- Repairing Computer Networks
However, as we discussed in our earlier piece on the cost breakdown of cyber attacks, there are additional areas where companies may lose a significant amount of money—enough to put them out of business for good. Since there is no “standard” cyber liability policy, it becomes vitally important for business owners and executives to understand their unique risk profile so they can choose the correct amount and scope of coverage. Working with an agent experienced in cyber liability helps ensure the company doesn’t face surprise expenses after an attack.
Now let’s look at some optional areas of cyber liability coverage. These areas may not be included in a base policy, but many businesses will benefit from ensuring they add coverage for the following losses:
- Reputation Damage
- Restorative Marketing
- Forensic Investigation
- Loss of Business
- Business Interruption
- Extortion Losses
- Funds Transfer Fraud
- Data Restoration
- Third Party Losses
- Intellectual Property Rights Infringement
- Improving Security Standards
The majority of company leaders are not aware of the extent of coverage they truly need, or they may try to hedge their bets by going for a less expensive policy. To ensure you have adequate coverage without under- or over-insuring, we recommend working with an agent who specializes in cyber liability insurance.
About Signature Insurance Group
Signature Insurance Group has been working since 1969 to provide comprehensive insurance solutions to individuals and businesses across the United States. We offer a range of insurance products and services in risk management, employee benefits, business insurance, and personal insurance, and we pride ourselves on our commitment to creating “Signature Relationships” with our clients where we commit to providing the best, most comprehensive service possible. To learn more about our goods and services, contact us today at (800) 464-3606.