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The COVID-19 pandemic has impacted everyone in one way or another. If one category most benefited from the pandemic, it’s cybercriminals. That’s why cybercrime has shot up by almost 300% since the start of the pandemic, and that’s why you must adopt necessary measures to protect your business from malicious cyber players. One of these measures is to have Cyber Liability Insurance.
Related Article: How to Become a Resilient Organisation
Cyber Liability Insurance covers the financial loss that results from cyber events such as data breaches. However, cyber liability is not typically included within general liability insurance and must be purchased separately. Also, each company offering a policy has different coverage options available and exclusions included.
Experts estimate that the damage inflicted by cybercrimes will add up to about $6 trillion globally in 2021. That’s higher than the GDP of the world’s third-largest economy, Japan, which sits at $5.38 trillion.
These statistics stress why SMBs, in particular, must have cyber liability insurance:
Cyber liability insurance could be the difference between your business sinking or staying afloat after a security incident. Without cyber liability insurance, the various expenses you might have to bear after an incident could financially harm your business in the short term or, in the worst case, result in permanent closure.
Over 60% of businesses that suffer a severe cyberattack close their doors within two years. As a business owner, you don’t have to panic. The point we’re trying to make with this article is that being prepared is better than pretending the problem doesn’t exist. So if you’re still not confident about your business resilience, don’t wait until after a hack to do something!
Here are a few expenses that a business would have to manage following a severe data breach incident:
Good cyber liability insurance would usually cover these expenses. But always remember that before you commit to a policy, you must get clarity from your insurer about what they do and do not cover.
Any venture with cyber exposure must consider having cyber liability insurance. However, cyber liability insurance should be your top priority if your business handles or stores sensitive information online, such as electronically protected health information (ePHI) or personally identifiable information (PII).
Make sure your cyber liability insurance has the following essential coverages:
Finding the right cyber liability insurance provider is not easy. While most general insurance providers offer general liability coverage, they don’t always provide comprehensive cyber liability coverage. Choosing an insurance provider rated ‘A’ or higher by the most reputable insurance rating agency is always ideal.
The following insurance carriers are worth considering:
But remember, just committing to a policy is not enough. You will also have to track/measure compliance with the agreement to make sure your contract is always valid and will, therefore, pay out in the event of an issue.
Recommended: What to Include in Your Incident Response Plan
Suppose your business is not following the recommended procedures for cyber security or doesn’t have the correct efforts in place. In that case, you’re facing the risk of cybercrime and not having the desired coverage. Be sure not to fall in that limbo!
Having the right partner by your side simplifies this process.
Whether you are looking to find a cyber liability insurance policy that is right for your business or trying to find and measure your policy’s compliance with cyber liability insurance contracts, we are here to help.
Contact us now to assist you in developing your cyber security strategy, including finding the right cyber liability insurance policy!