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Cyber Liability Insurance

Cyber Liability Insurance: Who Needs it and Why.

Cyber liability insurance is a special type of business insurance. Cyber risk is the risk of financial loss to an organization or individual as a result of deliberate acts or unintentional events in cyberspace. Cyber liability insurance provides protection against such losses and covers expenses related to cyber incidents including clean-up and recovery, data theft and natural disasters. However, it does not cover "normal" risks like fire, theft, and liabilities like medical expenses or legal judgments. This blog will go into detail about who needs cyber liability insurance and why that person should get it.

What does Cyber Liability cover?

One way to think about cyber liability insurance is as business insurance for the digital age. It protects against losses that are not covered by traditional property and casualty policies.

But what can it include? The answer to this question depends on the policy. Coverage may include coverage for actual damages, which are caused by hackers or viruses, or consequential damages that are incurred as a result of the loss of data. For example, you might be able to recoup some of your lost profits because you had to cancel orders due to hacked customer credit card information.

This type of coverage also includes legal defense costs, which can be extremely expensive if you find yourself in court defending yourself against an angry plaintiff who was harmed through a hacking incident. As a result, preserving a strong legal team is key in these situations.

Why cyber liability insurance is important

Many small businesses do not carry cyber liability insurance because they believe they are too small for such a risk. However, the potential cost of a cyber incident can be much greater than the cost of an equivalent physical disaster. For example, a large company may suffer losses of $100,000 due to a cyber incident if it does not have cyber liability insurance and a natural disaster occurred at that same business. If that business had cyber liability insurance, it could recover those losses from its insurer.

Cyber liability insurance is important to ensure your business stays afloat should something happen to you in cyberspace. The price of coverage can be minimal compared to the potential loss you will incur as a result of not having this insurance.

Who is cyber liability insurance for?

Cyber insurance is a type of business insurance. Anyone who has anything on the internet needs cyber liability insurance. If you have a website, it's likely that you are at risk.

It's not just websites either. You might need cyber liability coverage for your social media accounts or email account that you use for business. Cyber liability is an important protection that protects against cyber incidents like data theft, malware infiltration, and denial of service (DDoS) attacks.

Why We're Different

You may think you want the cheapest insurance you can find, but realize you may not be getting everything you bargained for…

While most insurance products are similar in price and function, insurance providers are very different when it comes to structuring a policy that actually covers you.

There’s no such thing as a one-size-fits-all insurance policy when it comes to your business.

We’re your neighbors. We protect businesses and people we know and care about, and that means we always look for ways to protect you better, including carefully choosing the insurance companies we represent to be both affordable and responsive.

Contact us and let the professionals at our company help you forge the strongest shield possible to help you protect the things you are working hard to build.

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