Understanding Cyber Liability Insurance

Understanding Cyber Liability Insurance

Cyber Liability Insurance

Cyber Liability Insurance cover

 

As data breaches continue to increase, many business owners are educating themselves on ways to avoid falling victim to a cyber attack.

Most companies have installed cyber defences to protect their data, but what happens when technology fails, and your business reputation is threatened?

In addition, the recent introduction of the General Data Protection Regulation (GDPR) which came into effect on May 25th, 2018 imposes significant obligations on companies within the EU.

For example, GDPR places restrictions on how companies collect and manage data, requiring companies to allow consumers to have the ability to access, correct, and delete private information. A breach of these regulations could result in a fine of up to €20m or 4% of Global Turnover.

What is cyber liability and how can it help you?

Cyber insurance provides protection when a company experiences a loss or data breach of sensitive or private information.

Data such as email addresses, personal information, corporate confidential information, credit card numbers, or health records are included.

A cyber policy typically covers:
  • Costs to defend and settle a lawsuit if the policyholder is sued by the victim or victims of a data breach.
  • Revenue a company loses as a result of a data breach or hack.
  • Reputational damage incurred because of a cyber incident.
  • The cost of performing a forensic investigation to determine the extent of a breach.
  • The costs of notifying affected parties that they are victims of a breach.
  • The cost of providing identity theft protection to individual victims.
  • Fines handed down by the regulator in cases where a breach of GDPR has occurred. Subject to policy limits.
  • The costs of upgrading systems and hardware to resume credit card processing after credit card details have been stolen.
  • Paying a ransom to release hijacked systems or data.
How should you protect your company?

The most robust cyber insurance strategies include a cyber liability policy that specifically provides protection for both first and third-party damages.

If you need advice, Murray & Spelman Ltd and Murray & Spelman (Kildare) Ltd would be happy to help you.

We offer very competitive terms with A-Rated security and a quality service from an experienced team of executives.

Simply request a callback today.