What is Cyber Insurance

What is Cyber Insurance

| September 17, 2019
Share |

Unfortunately, data breaches and other cyber-crimes are becoming very common. In the past couple years, data breaches have resulted in major fines and legal fees – not to mention headaches – for a discount retail chain, one of the nation’s largest banks, a well-known health insurer, an entertainment network and the federal government.

But it’s not just large organizations that are susceptible to being hacked or getting a virus. Did you know that 55% of small businesses have experienced a data breach and that 53% have had multiple breaches?1

A data breach can damage more than just your small-business computer system – it also can damage your reputation and put your customers and/or employees at risk. That's why cyber insurance can be a smart precaution for any size business.

What is cyber insurance?

Cyber insurance generally covers your business' liability for a data breach involving sensitive customer information, such as Social Security numbers, credit card numbers, account numbers, driver's license numbers and health records.

Won’t my general liability policy cover cyber liability?

General liability insurance covers bodily injuries and property damage resulting from your products, services or operations. Cyber insurance is often excluded from a general liability policy.

What does cyber insurance cover?

  • Besides legal fees and expenses, cyber insurance typically helps with:
  • Notifying customers about a data breach
  • Restoring personal identities of affected customers
  • Recovering compromised data
  • Repairing damaged computer systems

Most states require companies to notify customers of a data breach involving personally identifiable information2– a process that can be very expensive. And even though most states don’t require companies to offer free credit monitoring following a breach, such a gesture goes a long way with public relations.

Cyber Insurance

Brown Insurance Group can offer cyber security coverage and services to small business owners. Call us today and let’s talk about data breaches and cyber insurance 219.972.6060.

 

1http://www.insurancejournal.com/news/national/2014/11/24/347795.htm
2http://www.ncsl.org/research/telecommunications-and-information-technology/security-breach-notification-laws.aspx

Product, coverage, discounts, insurance terms, definitions, and other descriptions are intended for informational purposes only and do not in any way replace or modify the definitions and information contained in your individual insurance contracts, policies, and/or declaration pages from Nationwide-affiliated underwriting companies, which are controlling. Such products, coverage, terms, and discounts may vary by state and exclusions may apply.

 

Share |