Internet crime has become a common occurrence. A data breach can have a huge impact on a company's health and finances. If your company's data is stolen in a cyber intrusion, it can damage its reputation, expose it to liability and suspend business operations. With cyber liability insurance, you can transfer part of that risk to an insurance company.
What are the cyber risks that companies face?
Cyberattacks are a growing risk for companies. Common types of cyber threats include:
- Ransomware : This is a type of malware that infects a computer and restricts access pending redemption. It exploits software vulnerabilities and is often delivered via phishing emails.
- Phishing : Email or malicious websites are used to collect sensitive information or infect a computer with malicious code. Most phishing emails appear to be sent from a legitimate source. When recipients click on a link or open an attachment, a malicious code runs into the computer.
- Viruses : These malicious programs are designed to spread from one computer to another and to connected devices. Their purpose is to give cybercriminals access to your system.
How does cyber liability insurance work?
Cyber liability insurance can vary widely, depending on the specific insurance. There is no standard form for this coverage. Each insurer has its own form and its own policy language. However, most cyber-liability policies provide two basic types of coverage.
First Party Cyber Liability Insurance
This coverage pays the immediate costs your business incurs as a result of data breaches or cybercrime. This may include costs for:
- Repairing damaged hardware and software
- Informing the public and employees
- Public relations and marketing to protect your company's reputation
- Lost revenue from business interruptions
- Passwords requested by cybercriminals  19659013] Credit Monitoring for Customers and Other Related Expenses
Third Party Cyber Liability Insurance
This coverage helps your business defend itself against third party lawsuits and claims. It covers your legal fees, court costs and any damages you are required to pay. Third party coverage for cyber liability helps to protect your business against:
- Violations of privacy claims filed by customers or employees
- Copyright infringement, libel, defamation and other media liability claims
- Negligence or breach of contract claims  supervisory authorities
In addition to liability protection for first and third parties, some insurance companies offer risk reduction services. These services are designed to help your business identify cyber threats in advance so that you can avoid them.
How much does cyber liability insurance cost?
The price of cyber liability insurance can vary dramatically from insurance to insurance. Factors affecting cost include:
- Policy Restrictions
- Access to sensitive data
- Security measures in place
- Claims history
With the current occurrence of cyberattacks, companies need protection. However, it can be difficult to determine how much coverage you need. Talk to our knowledgeable agent about cyber liability insurance for your business. We can help you find a policy that protects your business from cybercrime at the lowest possible cost.