Does your organization really need cyber liability insurance? The answer is yes. With the increase in data breaches and cybercriminal activity, an organization can't afford to not invest in dependable insurance coverage.
ePC IT Solutions, a Bay Area IT support company offers the following guide containing everything you need to know about cyber liability insurance and why it is so important.
Who Needs Coverage?
Any organization that is online or exchanges data electronically needs a cyber liability insurance policy. A leading industry blog reports that 55% of small businesses have been the victims of a cybersecurity attack, but only 14% of those businesses have had the resources to mitigate those attacks effectively. Here are some examples of business activities that place your organization at risk:
Taking credit card and debit card payments.
Storing data on an onsite server.
Using email and networked applications.
Types of Coverage
Although cyber insurance policies are not uniform, the majority of policies are designed to cover liability and property losses. There are two different categories of coverage: first-party and third-party. First-party coverage deals with damages and losses to the organization, while third-party coverage deals with losses sustained by an organization's clients.
First-party coverage: Usually good for small businesses that store and exchange customer data, as well as organizations that electronically store proprietary information.
Third-party coverage: Needed by IT organizations that electronically store data and have an obligation to keep it safe.
First-party coverage can help protect against losses due to loss of income related to cyber-attacks and business interruption, computer fraud, data breach liability claims, property damage, and identity theft. Examples of losses that first-party coverage would help pay for include stolen credit card information, stolen money or other securities due to social engineering and phishing tactics, damaged computers and IT-related infrastructure, and credit monitoring and identify theft restoration services. Each insurance company can have different coverages and policy terms.
Third-party coverage can also help protect organizations in the event of a data breach. This type of coverage protects against claims related to a failure to protect clients' personal and sensitive information. Third-party coverage extends to payments for legal representation, failure to provide adequate network security, and failure to stop malware or other malicious content.
How to Get the Best Coverage
Purchasing a cyber liability policy is substantially less than incurring the costs related to a data breach. However, there are a few guidelines every organization should follow when selecting the best coverage. Here are the top factors to consider:
Obtain multiple quotes.
Get enough coverage, but not too much coverage.
Choose the highest deductible you can afford.
Practice cyber-attack risk mitigation.
Ready to learn more about cyber liability insurance? Schedule a no-obligation technology consultation with ePC IT Solutions today.