Hackers may access your clients names and valuable contact information including physical addresses. Not only that, but also social security numbers and employee identification numbers. And to make matters even worse, your company website may get disabled and you can no longer collect your payments or even take orders. Imagined that? That is a possible scenario in the case of a hacker attack or information breach.

At this point, having cyber liability insurance coverage for your company would sure come in handy.

Cyber liability insurance because when it rains, it pours.

What is Cyber Liability Insurance?

According to the AMSWins Group, Cyber Liability Insurance may cover.
– Privacy Liability (Covers loss of personally identifiable employee and customer
– Security Liability (Covers failure to prevent the entrance or spread of a virus/hacker
– Website Media Liability (Covers libel, slander and copyright infringement from your
website content.)
– First Party Cyber Extortion (Covers expenses to respond to a threat to harm or release
your data as well as cover ransom payments if necessary.)
– First Party Privacy Breach Response
– Customer Notification Expense
– Credit Monitoring Expense
– Computer and Legal Forensic Expense
– Credit and Identity Repair Expense
– First Party Business Interruption and Data Recovery Extra Expense
– Regulatory Defense and Penalty

Cyber insurance makes a lot of sense for enterprises and but here are some important reasons why you should consider this option for your small business too.

1. Cyber Liability is less expensive than you would probably guess.
2. Cyber Liability will usually cover more than you would probably guess.
3. More than likely you do not have a good risk management team.
4. You will still  be responsible even if your not hosting your data personally.
5. General policies will not cover you.

You should always make absolute sure your cyber policy will cover your businesses mobile devices and any company laptops too, so you make sure that you have coverage in as many areas as possible. Work with your insurance broker to incorporate cyber liability coverage within your general liability policy and also your employment liability coverage policy. You want make sure that your company has as many areas covered as possible. And as always with insurance, expect the unexpected.

Cyber Insurance Market

Cyber insurance markets have been growing at between 25-50 percent each year. According to The Betterley Report 2015, annual policy premiums are approaching $2.75 billion and the ecosystem of insurance underwriters, intermediaries/brokers, analysts/management consultants and compilers of insurance market information is evolving rapidly, trying to make the most of this rising tide.

Most insurers were convinced that their opportunities are to sell cyber-risk coverage to mainstream companies that have significant cyber-risk exposures.
Many of those prospective insureds are already the insurer’s customers, looking for coverage not present in traditional policies. The experience of a
distressingly large number of organizations—both large and small—in the past few years is perhaps only the tip of the iceberg representing the threat of data
and intellectual property theft facing businesses worldwide. Insurance protection to backstop IT security safeguards must be carefully considered for businesses and institutions, such as hospitals, educational institutions, and public entities.

Cyber Insurance Policy

A cyber insurance policy should cover expenses related to the management of an incident, the investigation, the remediation, notification of the subjects, call management, credit checking, legal costs, court attendance and regulatory fines.
– Multimedia/Media liability cover. Third-party damages covered can include specific defacement of website and intellectual property rights infringement.
– Extortion liability cover. Typically, losses due to a threat of extortion, professional fees related to dealing with the extortion.
– Network security liability. Third-party damages as a result of denial of access, costs related to data on third-party suppliers and costs related to the theft of data on third-party systems.