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A cyber insurance policy, also referred to as cyber risk insurance, is designed to help an organization mitigate risk exposure by offsetting costs involved with recovery after a cyber-related security breach or similar event.

What is cyber insurance?

Cyber insurance generally covers your business’ liability for a data breach involving sensitive customer information, such as Social Security numbers, credit card numbers, account numbers, driver’s license numbers and health records.

Won’t my general liability policy cover cyber liability?

General liability insurance covers bodily injuries and property damage resulting from your products, services or operations. Cyber insurance is often excluded from a general liability policy.

What does cyber insurance cover?

  • Besides legal fees and expenses, cyber insurance typically helps with:
  • Notifying customers about a data breach
  • Restoring personal identities of affected customers
  • Recovering compromised data
  • Repairing damaged computer systems

Most states require companies to notify customers of a data breach involving personally identifiable information– a process that can be very expensive. And even though most states don’t require companies to offer free credit monitoring following a breach, such a gesture goes a long way with public relations.

Do I need cyber insurance?

Most likely, you do. As the number of applications, devices, etc. increases, an organization becomes more vulnerable to attacks. Just like businesses insure against business problems, natural disasters, and physical risks, they need insurance coverage for cyber risks as well.

If a costly breach occurs, your company may not have the resources on hand to combat these issues or recuperate losses. Cyber security insurance can provide support, so these attacks do not cripple your business.

What does cyber insurance cover?

Most cyber insurance plans cover a broad range of cyber risk losses that may unexpectedly arise from cyber attacks. In addition, some plans can offer coverage for physical damage to hardware or coverage for business income loss. Plans can be personalized depending on your current business security posture.