When people think of data breaches and leaks, they often think of major corporations. But that isn’t always the case. Small to mid-sized companies are often more frequently targeted than larger companies. Generally, larger companies have a significant budget to spend on cybersecurity, whereas smaller companies don’t always have that option. Not having adequate cyber liability insurance can be detrimental to any business. Here is all you need to know about cyber liability insurance and what it covers.
What Is Cyber Insurance?
Cyber insurance can be referred to by several names, including cyber liability, cyber risk, cyber attack, and cyber security insurance, but they all refer to the same type of policy. For this blog, we’ll be referring to it as cyber liability insurance.
Cyber liability insurance provides businesses with coverage to help protect the company from cyber security issues and financial recovery from breaches. Cyber attacks can leave a company unable to access their digital network and result in a loss of revenue until recovered. As more and more business transactions are conducted online, it can leave businesses vulnerable to attacks.
What Does a Cyber Insurance Policy Cover?
Cyber liability insurance policies can cover various aspects of cyber security. Some of the most common coverages are:
- Data Loss & Recovery
- Loss of Revenue
- Computer Fraud
- Cyber Extortion
- IT Forensics
- Legal & Media Expenses
Most insurance carriers have ways to make cyber liability insurance comprehensive to match their clients’ needs. Data breaches and cyber attacks can lead to sensitive information in the hands of the attacker to use for financial gain.
Most Common Cyber Security Threats & Concerns
There are countless cyber threats every company faces, regardless of industry. The top 5 most significant cyber concerns are:
- Ransomware: Cyber criminals steal sensitive information and require the company to pay a ransom to regain control.
- Social Engineering: Attackers exploiting social interactions to gain network access. Typically, cyber criminals manipulate the targets into bypassing security measures or disclosing information.
- Third-Party Exposure: Utilizing a third party to handle private information (SSN or credit card numbers) can still put companies at risk. The company that contracted the third-party vendor is legally responsible for the data breaches.
- Outdated Systems: Using outdated network systems can make hacking easier as they’re less likely to have prevailing protection. Out-of-date systems make companies easier targets and more vulnerable to attacks.
- Un/Under Trained Employees: Having the latest and most sophisticated network protection is rendered useless if not properly used. Employees should be trained rigorously on proper procedures and protocols to help prevent data breaches.
Protect Your Business From Cyber Attacks With RRL Insurance
Any industry of any size is susceptible to attacks; it’s not a matter of if but rather a matter of when. Customers might deter from a business if they’re known to be prone to cyber-attacks or lacking in cyber security coverage. Customers should feel safe while making online business transactions. Preventing a cyber-attack is the first step in protection, followed by adequate insurance coverage. Extensive network security software on all company computers and devices can help avoid cyber exposure.
Working with a knowledgeable insurance carrier is also essential in protection. RRL Insurance understands the vulnerabilities facing small to mid-sized businesses and can offer comprehensive policies. Contact us today to learn more about cyber liability insurance coverage.
