What Does Cyber Liability Insurance Cover?

Businesses must account for evolving and diverse risk profiles. In many sectors, cyber threats have become a particularly prevalent concern, as data breaches can have disastrous consequences for companies. These risks and exposures are likely to continue to grow across most industries due to the increasing use of digital solutions and cyberspace. Fortunately, by understanding and securing cyber liability insurance, your company can equip itself to manage difficult situations.

Can Insurance Respond to Cyberattacks?

Cyber liability insurance, also known as cyber insurance, can often offer versatile defensive capabilities against the financial consequences of data breaches and cyberattacks. Although policies’ exact specifications may vary, you can generally rely on your coverage to render financial aid in response to the following cyber incidents:

• Phishing scams
• Social engineering
• Malware infections
• Cyberextortion
• Distributed denial-of-service attacks
• Man-in-the-middle attacks

What Can My Policy Cover?

Purchasing and maintaining suitable cyber liability insurance can ensure your business can access funds and resources following an incident. Specifically, your policy may pay out to assist with the following:

• Incident response costs—This may include expenses related to investigating the cause of a breach and notifying affected parties, such as customers whose data was compromised.
• Hiring outside help—Your policy may help pay for outside assistance, such as the services of IT contractors, public relations firms or crisis management teams.
• Responding to lawsuits—Affected parties may sue your business following a cyber incident. Your policy can assist with retaining legal assistance, as well as paying settlements and judgments.
• Recouping business interruption losses—Cyber incidents may cause costly delays in normal operations, but your coverage can often compensate you for the income you would have earned.

We’re Here to Help

Contact Cornerstone Independent Insurance Agency LLC in Fort Worth, TX, today to learn more about cyber liability coverage and get a free quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.