What is Cyber Security Insurance?
Cyber security insurance, also known as “cyber risk insurance” or “cyber liability insurance,” protects businesses against losses that are computer or technology related. This could be due to a data breach, a phishing or ransomware cyber attack, or because a laptop containing sensitive information was lost or stolen. Get a quote to find the right coverage for your business.
Who needs Cyber Security Insurance?
If your business maintains a website, accepts credit card payments, or collects or stores customer data including names, email addresses, home and mailing addresses, phone numbers, social security numbers and more, you are vulnerable to a cyber attack. You may be liable for the cost to notify affected parties and provide credit monitoring if you have a data breach, even if the data is never exploited. You could lose money in a phishing attack or receive a ransomware demand.
Businesses of all sizes can experience a data breach, cyber attack, or other data security incident. Consultants, personal trainers, online retailers, and healthcare professionals are just some examples of professions for which we provide cyber security insurance. To see if we cover your business type, enter your ZIP code, and click Get a Quote above. Provide some brief information about your business and we’ll tell you if cyber security insurance is right for you and how much it will cost.
Cyber Security Insurance may cover
Cyber Security Insurance may cover the costs associated with a data breach, a cyber attack, security failures, and more. Here are some examples.
A company’s IT (Information Technology) vendor was impacted by a data breach which included the company’s files that were hosted on an offsite server. Even though the data breach was not on the company’s system, their cyber security insurance policy covered the income loss and extra expenses the company incurred due to the interruption to its business.
A company received a note from a threat actor that their servers and data had been encrypted with ransomware. Their cyber security insurance policy provided the services of a data breach attorney and a forensics company to investigate and respond to the threat. A reduced ransom was negotiated and paid in order to restore the company’s systems.
Why do I need Cyber Security Insurance?
Nearly every business today uses technology to get the job done. This means most businesses are vulnerable to cyber incidents like hacks, data breaches, phishing attempts and more.
Every year, hackers become bolder and engineer new ways to get to your data – and your money. Small business owners must take control of their cyber security to protect themselves and one of their most valuable assets – their data.
You need Cyber Security Insurance if your business:
Accepts credit cards, or other digital payment types
Uses computers and mobile devices like tablets or smartphones
Collects or stores medical or financial data
Stores confidential customer information.
Today’s business technology opens up a world of possibilities but also raises critical data security concerns. Threats of data breaches and computer hacks are real for all businesses. According to the Hiscox Cyber Readiness Report™ 2023, businesses in the US are increasing spending and activity to reduce their vulnerability to cyber events, but there is more work to be done.
How much does Cyber Security Insurance cost?
The cost of cyber security insurance is determined by several factors. To find out how much cyber security insurance will cost for your company to be protected from data breaches, cyber attacks, and more, get a quote.
What does Cyber Security Insurance cover?
Cyber Security Insurance may cover the following costs:
Data Breach Costs: Costs associated with responding to a breach, such as forensic costs to confirm and identify the breach, costs to notify affected individuals, credit protection services, including costs to staff a call center for redemption of monitoring offers, and crisis management and public relations costs.
Cyber Extortion: Response costs and financial payments associated with computer system-based ransom demands. With the proliferation of ransomware and anonymous currencies such as Bitcoin, cyber extortion threats are on the rise. In the digital world, intangible assets are ‘kidnapped’ and used to extort individuals through threats to shut down a system or divulge sensitive or proprietary information if a ransom is not paid.
Cyber Crime: This optional coverage enhancement may cover financial losses associated with social engineering, reverse social engineering, and funds transfer fraud. Social engineering is when someone uses electronic means to impersonate your client, vendor, or employee to deceive your company into transferring or delivering financial assets. Reverse social engineering is when a cybercriminal uses your computer system to deceive your client or vendor into transferring money intended for you to another person or entity.
Business Interruption: Lost business income when your company has its network-dependent revenue interrupted. Technology growth has created new business income perils, such as viruses, tech failures, system errors, and computer hacking, so cyber coverage is needed to pay for interruptions from these events as well.
Data Recovery: Costs to replace, restore, or repair damaged or destroyed data and software. In a digital world, property is no longer exclusively tangible, so cyber coverage is needed to pay for intangible data recovery costs.
Privacy Protection: Costs to defend and resolve claims regarding the handling of personally identifiable or confidential corporate information (but not biometric data). May cover regulatory proceedings and investigations regarding the violation of privacy. May cover issues resulting from the failure of network security, including the negligent transmission of a virus.
Digital Media: This optional upgrade may cover costs to defend and resolve claims related to online content, such as copyright or trademark infringement, invasion of privacy, defamation, unintentional infliction of emotional distress, unfair practices, and negligence in connection with your media activities. This is insurance for claims made against you that arise from the content of your website, social media, and other promotional material.
What does Cyber Security Insurance not cover?
Criminal Proceedings: We won’t cover claims brought in the form of a criminal proceeding, such as a criminal investigation, grand jury proceeding, or criminal action.
Funds Transfer: Other than transfers associated with cyber crime coverage, we won’t cover claims for loss, theft, or transfer of funds, monies, or securities.
Infrastructure Interruption: We won’t cover claims from failure or interruption of water, gas, or electric utility providers.
Intentional Acts: We won’t cover any fraud, dishonesty, criminal conduct, or knowingly wrongful act of the business or its employees.
Prior Acts or Knowledge: We won’t cover any claims you had knowledge of prior to the policy period.
Subsidiary Outside Control of Named Insured: We won’t cover any incident experienced by a subsidiary you do not have majority ownership or management control of.
Business Interruption from Systems Under the Control of Third Parties: We won’t cover business interruption costs from a system failure of a computer system owned by any person or entity that is not an insured (except for those interruptions covered by the dependent system failure coverage enhancement).
How Cyber Security Insurance protects your business
Cyber security insurance offers broad coverage designed to protect businesses like yours. Here are some examples of what could go wrong and how it could be covered:
Phishing email leads to ransomware: An employee at a retail store’s headquarters clicked on a link in a phishing email that appeared to come from a vendor partner. A cybercriminal gained access to the retailer’s entire server, impacting its point-of-sale registers. The ransomware attack held the systems hostage, effectively stopping sales from being transacted, until ransom was paid.
Media firm experiences breach of client information: The computer system of a media firm contains large amounts of data on its clients’ analytics, including search engine optimization keywords, pay-per-click campaigns, customer databases, etc. The system’s security services upgrade lapsed, leaving it vulnerable to a data breach. The system was hacked and the media firm was obligated to indemnify its clients for breach costs to notify impacted customers and lawsuits alleging negligence.