Cyber liability coverage is a fast-growing area of business insurance. While internet technology has opened up tremendous opportunities for the global marketplace and for information sharing, it has also left the door open to criminal activity. When a system is hacked, sensitive information may fall into the wrong hands and be used for criminal purposes. Cyber crime insurance protects a company from debilitating loss due to security or privacy breaches that allow or fail to prevent unauthorized access to data.
Tallying the Cost of Cyber Crime
A business can start paying for a security breach virtually the moment it occurs, if a hacker disrupts the system and interrupts normal business. Other costs, nearly as immediate, include:
- Notification of breach to affected people, which may include letters, a response call center and free credit monitoring
- Public relations help to mitigate damage to reputation
- Fines and penalties
- Replacement of business assets
- Lawsuits associated with libel and slander
Being a Responsible Insuree
Cyber liability insurance is more widely available than ever before. To be eligible for a policy, a business may have to demonstrate that is has a disaster response plan in place and ready to implement. An insurer may want to know what the company protocols are for employees to access the data system. It may be necessary to share some particulars of how you guard personal and sensitive information in order to insure against the loss of that critical information.