Cyber Liability Insurance – What It Is & What It Covers?
The internet is one of the most intriguing, virtual places in the world. It is your window to a world of information. The internet also provides you with direct access to countless products and services. But despite its many advantages, the internet can also be a vulnerable place – especially for all businesses. If you ignore the necessary safety protocols, you could end up exposing your computer systems to several risks. However you can protect your computer systems and take the necessary security measures by investing in cyber liability insurance. Here’s an introductory guide on cyber liability insurance and what it covers.
What is Cyber Liability Insurance?
Cyber liability insurance, also known as cybersecurity coverage, is a new-age insurance policy which safeguards businesses and individuals from internet-based risks, as well as risks associated with information technology infrastructure, information governance liability, information privacy and other related activities. The cyber liability insurance plan offers coverage against data destruction, data theft, breach, and fraud, extortion, hacking, and denial of service attacks, etc., thereby enabling policyholders to safeguard the online or digital aspect of their business. This insurance policy covers financial losses resulting from harmful digital actions and events.
What Does Cyber Liability Insurance Cover?
There are two main types of cyber liability policies – i.e. first-party policy and the third-party policy. The coverage offered by the cyber insurance provider typically depends upon the type of policy you choose. Typically, the following is covered under the broad umbrella of cybersecurity or liability coverage.
A malware attack is defined as a computer program that you may receive via file transfers, texts, and downloaded programs or through malicious activities on the digital platform. If your computer system suffers a malware attack, the cyber insurance policy offers coverage against restoration cost of damage to the device. It also covers costs associated with court transportation, photocopying documents, etc.
Identity Thefts and Social Media Liability
Identity theft is defined as the use, alteration or deletion of any personal data stored in the computer. In the event of identity theft, the cyber liability insurance policy covers the legal costs, for instance, prosecuting a third-party and the other costs associated with courtroom proceedings.
IT Theft Loss
IT theft loss is defined as the act of cyber intrusion that fundamentally leads to unauthorised payments made to third parties. In such an event, your cyber liability coverage policy protects you against the financial losses arising out of IT theft and the legal expenses arising due to claims lodged by parties.
Phishing and Cyber Stalking
Phishing is a cybercrime through which miscreants can get unauthorised access to your usernames, passwords, internet banking, debit, and credit card details. Cyberstalking, on the other hand is the use of digital media as a weapon to frighten or harass online users, and it typically occurs on social media platforms. A good cyber liability insurance policy protects you against the financial losses endured by you, and it also covers the costs associated with legal procedures.
Apart from the coverage mentioned above, you can also get access to a comprehensive cyber insurance coverage. Your cyber policy can protect you against a series of different cybercrimes including email spoofing, media liability claims, cyber extortion and privacy, and data breach by a third party.
Conclusion: An ideal cyber liability insurance plan depends on a variety of factors such as the business needs and severity of your business, the type of investee revenue system, the protection of own data as well as third-party data, etc. As such, you should consider investing in all-round policies that cover you against cyber liability, cyber security and technology errors and omissions. The sum assured you get depends upon the type of cyber insurance policy you buy and the premium payable against it. Remember to read the terms and conditions of the insurance plan, before investing. At PINC Insurance, we can help you fulfil all your cyber insurance needs. Reach out to our team of experts to find the best cyber insurance policy for your business.