Cyber Liability Insurance: Why Every Business Needs Protection in the Digital Age

As many businesses increasingly rely on digital technology and electronic devices, cyber risks and exposures have increased significantly. Even businesses that may have previously made minimal use of such technology must now account for online threats and digital concerns. These changing risk profiles require organizations of all sizes and sectors to respect the importance of cyber liability insurance and invest in a suitable policy.

What Is Cyber Liability Insurance?

Also known as cyber insurance and data breach insurance, these policies have become a core pillar of many companies’ business insurance packages. They live up to their name by accounting for potential losses and damages from cyber incidents, such as cyberattacks and data breaches. In the wake of such incidents, your cyber liability insurance policy may serve as a critical lifeline, insulating you from out-of-pocket losses that might otherwise prove devastating.

What Can Policies Cover?

Cyber liability insurance may include multifaceted financial protection against many incidents common across various industries. Whether you’re facing losses after falling victim to a phishing scam, malware infection or ransomware attack, your coverage could offer critical aid. Specifically, payouts might alleviate losses and expenses incurred through the following:

• Notifying affected parties that their information may have been compromised

• Investigating the cause and scale of the breach

• Satisfying the demands of cyberextortion perpetrators

• Recouping revenue you would have earned if not forced to shut down systems or networks

• Paying fines and legal expenses, such as attorney fees, settlements and judgments arising from lawsuits

• Hiring outside help, including IT contractors and public relations firms

Why Is Coverage More Important Now?

With technology taking root in many workplaces across most industries, securing appropriate cyber coverage may be more important than ever. In recent years, cybercriminals have enhanced their attack methods and widened their target selection. While perpetrators may have previously focused on government agencies and large corporations, small- and medium-sized companies now also present tempting targets.

Learn More

Contact Lord & Associates Insurance Agency today to discuss your cyber liability coverage options and find a policy that can protect your financial interests.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.