The cost of having Cyber Liability insurance vs the cost of NOT being covered.
When a company loses its electronic data, it may be liable for damages that result from third-party data theft. General liability insurance protects businesses against lawsuits for bodily injury and property damage, but cyber-liability insurance excludes coverage for such incidents. Data breaches are a costly and time-consuming process in most states, and cyber-risk coverage can help businesses respond to cyber incidents quickly. A cyber-liability policy can provide a wide range of services, from proactive risk mitigation to remediation.
In order to protect a company’s assets and reputation, cyber liability insurance is an important consideration. A cyber attack can affect a company’s financial and employee data, which may violate GDPR and lead to a massive fine. Cyber-liability insurance can help a company to cover these costs and protect its brand. Cyber-liability insurance can protect your business and prevent financial loss and brand reputation from being ruined by cyber attacks.
One of the most devastating cyber incidents occurred in 2011 when hackers broke into the Sony PlayStation Network, exposing the payment card details of 77 million users. The company was forced to take down its website for 23 days and incur costs of over $171 million. Despite its recent breach, Sony’s cyber insurance policy only covers physical property. This has made cyber-liability more prevalent than ever. If you are an industry leader in a specific field, it’s worth reviewing your cyber-liability policies.
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Third-party cyber liability insurance is a necessary investment for any company to protect its assets. It will cover the costs of litigation and extra expenses incurred as a result of cyber incidents. In addition, cyber liability insurance is bundled with errors and omissions insurance. It is sometimes referred to as tech E&O insurance. The cost of cyber-liability insurance can make it difficult for a company to survive a lawsuit. Cyber-liability insurance is a good idea for any company that relies on sensitive customer information.
Some traditional insurance policies cover specific cyber events. For example, a Business Owner’s Policy may cover the costs associated with lost or stolen data. Stand-alone cyber liability insurance, on the other hand, covers more general risks. Cyber-liability insurance policies can pay for a range of expenses resulting from an information breach, including lost earnings from paused business operations, intellectual property losses, and more. However, this type of insurance does not cover the costs of sales revenue or value in intellectual property.
The cost of cyber attacks can be crippling to a company’s reputation. As a result, businesses must implement a cyber-security plan and purchase cyber liability insurance protection. Since cyber-security has become a priority for every organization, cyber-insurance has become an indispensable part of any company’s financial plan. Cyber-insurance policies are relatively new, but they have become increasingly popular over the last decade. Every organization faces the risk of a cyber-attack affecting its reputation and revenue.