What is cyber insurance?
When you run a small business, you face many physical risks, such as property damage and injury. But your business also faces risks related to the use of technology. These risks range from data breaches to computer hacking.
To protect against these risks, many companies add Cyber insurance to their business insurance policies. Cyber-insurance can offer extensive safeguards to help protect businesses from a variety of technology-related risks. At The Hartford, we offer two different insurance policies for cyber insurance: liability insurance for cyber activity and data breach insurance.
Data breach insurance helps your business respond to violations and can provide adequate protection for small business owners. Cyber activity liability insurance is generally targeted at large companies and provides more coverage to help them prepare, respond and recover from cyber-attacks.
Why companies need liability insurance for cyberattacks or data breach insurance?
Hackers can target personally identifiable information (IPI) or personal health information (ISP) that you keep on your company’s computers. That’s why it’s important to protect your business with data breach insurance or liability insurance to help you respond quickly after a data breach or cyberattack. These blankets can help if:
- Your company’s computers are infected with a virus that exposes private and sensitive information.
- Customers or patients sue after your company has lost confidential or sensitive information.
- You face high public relations costs to protect your company’s reputation after a data breach.
Ask yourself the following questions about whether your company needs data breach insurance or cyber activity liability insurance:
- Do we collect, store, send, or receive PII or PHI?
- Do we work in an industry where there are rules about customer information, such as health care, education, or finance?
- What would we do if we were faced with a cyberattack today?
What is the difference between cyberattack liability and data breach insurance?
It is always important to know what business insurance covers. This is especially true for cyber-insurance. Our data breach insurance and cyber-attack liability insurance are two different policies. While they offer any of the same privileges, including passage to our cyber center with easy-to-understand resources for preventing data breaches and response, both policies help protect your business in different ways.
What is data breach insurance?
This insurance helps you react to the loss or theft of a CPR or PHI, whether it’s a hacker entering your network or an employee accidentally leaving his laptop in a restaurant.
If your small business is a victim of a breach, data breach insurance can help you pay for:
- Notify affected customers, patients, or employees
- Hire a public relations firm
- Providing credit monitoring services to victims of data breaches
For extra security, we can also help you customize your data breach policy.
Here are some guarantees you can add:
Covering additional revenue and expenses to help you replace lost revenue if you can’t run your business due to a data breach.
Coverage of previous acts to help cover claims related to a violation that occurred before the effective date of your policy.
The Extortion Guarantee, which helps cover the amount you paid if someone takes your company’s data and asks for a ransom.
What is liability insurance in the field of cybernetics?
Cyber activity liability insurance is recommended for large companies. It covers financial losses due to cyberattacks or other technology-related risks, as well as private investigations or prosecutions following an attack. For example, if a hacker locks your computers, starts deleting files, and demands a ransom, this insurance can help you respond to the attack and help your business recover lost files and revenue.
If your large company is the victim of a cyberattack, cyberattack liability insurance can help you cover it:
- legal services to help you comply with federal and state regulations
- Notification fees to notify affected customers that their personal information has been compromised
- Extortion paid to recover locked files during a “ransomware” attack
- Loss of revenue due to a network outage
- Prosecutions related to the privacy and safety of customers or employees
- Regulatory fines from state and federal agencies
What is not covered by the insurance of civil liability for cyber defense and data breaches?
It is important to know that these policies do not cover all types of claims. You may need other types of commercial insurance to create a comprehensive protection plan, such as:
- General liability insurance to help cover claims your company has caused in the event of property or personal injury.
- Commercial property insurance, which helps protect your company’s physical location and equipment, whether it’s a property or a rental.
- Liability insurance for employment practices, which helps cover employees’ claims for harassment, discrimination, or unfair dismissal.
- Professional liability insurance, which can help cover claims for errors or omissions in your company’s professional services.
How much does cyber-insurance cost?
There are a number of factors that can affect the cost of your business insurance. Thus, the cost of your e-insurance will probably be different from that of another company.” The cost of your data breach insurance or liability insurance for e-businesses may depend on your situation:
- number of customers, consumers or patients
- The type of sensitive data and information you store
- Claims history