Cyber Liability Insurance

Statistics show that small and midsized businesses are the most vulnerable to cyberattacks simply because they’re smaller and easy targets. Smaller businesses often believe they fly safely under the radar when it comes to data protection and risk management. Other businesses assume their data isn’t attractive to hackers since they don’t track Social Security numbers or store credit card data. Both are incorrect assumptions!

Reasons to hack your business can range from simply proving it’s possible to acquiring a ransom. The dark web is rife with sensitive data for sale, including Social Security numbers and company trade secrets. It’s also a place to score malware starter kits or ways to exploit vulnerable code.

While many known hacks are reported, it’s difficult to quantify how many go unnoticed. This is also an incorrect assumption. In the cyber underworld, any data is valuable, and it’s often used to design more intelligent (and profitable) social engineering
scams.

One thing’s for sure: Cyber liability insurance is a necessary part of risk management for your New Hampshire and New England businesses, and shouldn’t be viewed as merely an option.

What does cyber liability insurance cover?

Some insurance companies distinguish between cyber liability and data breach insurance. Usually, the difference has to do with the size of the business, if there’s any difference at all. “Cyber liability” is generally a term used for larger companies, and “data breach” is often used for small and midsized companies. Cyber liability and data breach insurance aren’t standardized the way property and auto policies are. At Kapiloff we use a customized approach to coverage — a collection of endorsements specifically tailored around your coverage needs.

Cyber liability insurance often covers costs relating to:

  • Lost income caused by a cyberattack
  • Customer notification of a data breach
  • Reputational damage and public relations support
  • Legal defense related to a breach
  • Civil damages and settlement awards
  • Repairing damage to computer systems and networks
  • Free credit monitoring for affected customers
  • Recovering encrypted data
  • Cyber extortion and ransom demands, as well as ransom negotiations
  • State and federal fines and penalties
  • Extortions paid to recover locked files in a ransomware attack
  • Computer fraud
  • Loss of transferred funds
  • Loss of revenue and business interruption due to a cyberattack
  • Dependent business interruption system failures
  • System failures of outsourced providers
  • Strengthening and improving your system to make it more resistant to a future breach (this may be called “betterments” coverage)

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