What Is Cybersecurity Insurance?
The digital information age is progressing faster than we can keep up with it—that’s a fact. Every day there’s another threat to our data security, our financial information, and our very identities. We count on electronic communication for just about everything in our daily lives, and yet from department store card hacks to iCloud leaks to personal identity theft scams, regulators are struggling to protect us from hackers.
Part of this is a new form of personal, business and consumer protection: insurance against damage from hackers and data leaks. Learn about cybersecurity insurance, what it is, how it can help you and your business, and where you can turn for this new and vitally important protection.
What Is Cybersecurity Insurance?
Cybersecurity insurance is a relatively new entry into the field, but it is designed to manage and defend against losses from all manner of cyber and technological intrusions and incidents. These may include interruption of your business, data breaches, damage to your network, industrial espionage, identity theft and other losses.
Cyber Insurance and Risk Management
A good cybersecurity insurance policy does far more than cover you for damages you suffer. It can also help to foster and encourage best practices for your company’s security policies and operations. Many policies can offer better coverage or lower premiums based on the effectiveness and amount of preventative measures taken by the company.
In other words, by exploring cyber insurance, you’re taking a step in the direction of beefing up your practical protections as well as adding a degree of financial protection.
Why You Need Insurance
Far too many businesses forego cyber insurance policies because they believe the premiums will be too high, there will be too many exceptions or exclusions to the policy, and faith that the odds are in favor of the company not being targeted by a cyberattack. However, there’s an old adage that nobody needs insurance until they do, and everyone who gets hacked never believes it will happen to them—until it does.
Generally speaking, your general liability and other property and business insurance coverage will expressly exclude cyberattacks from coverage. This means that even if you have a robust business policy, if you get hacked you might be out in the cold. Cyber insurance can cover you against these issues. Every day businesses are more likely to suffer from:
- Data theft
- Data destruction
- Cyber extortion and ransomware
- Hacking
- Service Denial Attacks
- Crisis management costs from breaches
- Legal claims related to privacy violations, fraud and defamation
What Isn’t Covered
Cybersecurity insurance covers a wide range of damages from technological attacks, but it doesn’t cover potential bodily harm that may result from cyberattacks. Other forms of insurance and clauses in your business policy may, however. Your best bet to determine what coverage you need is to discuss it with your insurance carrier.
If you have questions about cybersecurity insurance and protecting your business, Harris Insurance is here to help. For over 100 years we have protected clients in Las Vegas and throughout Nevada for all their business insurance needs. Just give us a call today to discuss your coverage needs and how you can gain the very best business, personal and cybersecurity insurance protection.
