Cyber Liability Insurance
Cyber Liability Insurance Information
If you’re running a business in modern times, you probably store a lot of information online and electronically. Doing so can make operations quicker and simpler, but it also puts your business at a lot of risk. Information stored electronically is subject to data breaches, cyberattacks, hackers and more that can damage your business and your reputation.
Hooper, Spuhler & Sturgeon Insurance Services works closely with business owners to create reliable and affordable insurance policies to protect their business. Our dedicated agents are determined to provide high quality customer service and that will fit your coverage needs without stretching your budget.
What Does Cyber Liability Insurance Cover?
Cyber liability insurance is primarily designed to compensate businesses for electronically stored information that is damaged, stolen or breached. This includes coverage for:
Loss or Damage of Electronic Data: This coverage compensates the business to restore or replace information, data and programs that are destroyed or stolen due to a breach or attack. Cyber liability can also cover damage caused by viruses.
Loss of Income and Extra Expenses: Say an incident causes your business’ computer systems to completely fail for an extended period of time, or an accident causes damage that will take a while to recover from. Loss of income and extra expenses can compensate the business for income that is lost during this time.
Cyber Extortion: In some cases, hackers will break into a business’ system and holds it hostage in return for money. This is called cyber extortion. Cyber liability insurance can compensate you for the money you would have to pay to the hacker in order to free your business’ information.
Reputation Damage: A cyberattack or information loss can damage your business’ reputation heavily. Potential clients will be less inclined to work with a business that has had a recent data breach. Cyber liability insurance can help with costs related to building up your reputation again, such as marketing and public relations.
While these coverages are geared to protecting your business against direct losses, cyber liability insurance also covers liability aspects that could lead to lawsuits against the business.
Network Security and Privacy Liability is a form of negligent liability that will cover your business against lawsuits related to client’s sensitive information being breached. If a customer has their information accessed by a hacker, for example, they may sue your company for not safeguarding their information properly.
Cyber liability insurance can cover legal fees, settlement costs and other expenses related to a lawsuit that can result in a data breach or cyber-attack.
Even the businesses with the most comprehensive cyber protections can fall victim to hackers and viruses. Call Hooper, Spuhler & Sturgeon Insurance Services at (559) 686-3442 or fill out an online quote form to get started.
Common Cyber Liability Insurance Questions
What is Cyber Liability Insurance?
Cyber liability insurance is a type of business insurance policy designed to protect businesses against information loss and cyberattacks.
When is Cyber Liability Insurance Needed?
While cyber liability insurance isn’t generally required by law, it is still critical for any business that stores information online or electronically. Your business should be covered before operation so that you have protection from the very beginning.
Is Cyber Liability Insurance Necessary?
Many small business owners make the mistake of thinking that they are safe from data breaches and cyberattacks. On the contrary, small businesses are frequently large targets for hackers due to the usual lack of solid online protections. Cyber liability insurance is necessary for every modern business.
Who Needs Cyber Liability Insurance?
Any business that stores information should have cyber liability insurance to cover against possible losses. This is especially true for businesses that house sensitive information, such as doctor’s offices, hospitals, insurance agencies and more.