What Can Cyber Liability Insurance Protect Against?

Given the number of high-profile cyber attacks and data breaches that have occurred over the last few years, many business owners recognize the importance of taking out insurance to guard against this risk. Still, many people do not know what to expect when purchasing a cyber liability insurance policy. Understanding what kind of coverage these policies offer is essential for business owners who want to ensure the most comprehensive protection possible.

Third Party Expenses

Many business owners would expect these insurance policies to cover expenses related to investigations, lawsuits and regulatory punishment. Most policies do address the costs of legal defense, damages and other financial sanctions. However, business owners should always discuss the specifics of a given policy with an insurance agent.

Other Unexpected Costs

Cyber liability policies can also address a number of costs that a business may face while dealing with a data breach. For example, a policy may help cover expenses associated with the following tasks:

  • Investigating the origins and severity of the breach
  • Notifying clients of the breach
  • Offering special services for affected clients, such as call center support
  • Conducting public relations campaigns to win the trust of new or previous clients

Since these expenses may become significant, business owners should take time to determine the amount of first-party costs that a particular policy covers.

Understanding the Options

For help finding the best protection, business owners should consider speaking to an insurance agent who can explain the coverage areas and limitations of different cyber liability insurance policies. Business owners should weigh these factors just as carefully as cost before making a final decision.

Categories: Cyber Risk, Insurance
This post was written by , posted on April 15, 2015 Wednesday at 10:00 am

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