Every business has a cyber exposure. If you process credit cards, have a computer network, a website, or use email, your business can be significantly impacted by cybercrime. The reality of this risk exposure in our current operating environment makes Cyber Liability Insurance an essential inclusion in your business insurance program.
Regardless of the strength of your IT security systems, there is no failsafe way to protect your data. A data breach will not only affect your business, it can negatively impact your clients and customers.
Stolen intellectual property, financial details, birth dates and the loss of sensitive personal data can leave you held liable and exposed. The fallout of a cyber incident can potentially cause enormous damage to your bottom line and reputation if your system is breached.
A network security compromise is expensive and can lead to:
- Financial losses
- Reputational damage
- Loss of intellectual property
- Disruption to business
- Statutory Fines and Penalties
Although you cannot guarantee that your business will not fall victim to a cyber-attack, you can protect your financial and operational exposures with a Cyber Insurance policy.
Please note: Most traditional Business Insurance policies do not encompass Cyber Liability Insurance cover.
Please Note: Below are some of the more common insurance policy features, however, the list is not exhaustive and some features may not be offered by certain insurers. Please refer to the insurer-specific policy wording for inclusions, exclusions, terms and conditions.
Coverage for expenses related to cyber extortion or terrorism. This includes events like theft of hardware, destruction of data stored on any computer system or theft of access codes from your premises, computer system or by your employees.
Financial cover for the costs associated with a privacy breach including client notification, the costs associated with providing credit monitoring services to affected customers, as well as compensation for clients who suffer financially or emotionally as a result of the breach.
Reimbursement of the costs incurred to restore your company’s reputation which may have been tarnished as a result of a data breach.
Cover for lost income that would have been earned during the period your business is disrupted as result of security failure. This includes payment of your ongoing operating expenses incurred e.g. payroll, fixed overheads.
Fines and Penalties
Financial compensation to cover any fines or penalties imposed by government or regulatory bodies as a consequence of breaching data protection laws. Regulatory fines and penalties can amount to $1.7 million.
Cover for legal representation and advice, as well as those costs incurred in connection with formal forensic investigations by authorities.