Cyber Liability Insurance at a Glance
What is Cyber Liability Insurance?
Cyber Liability Insurance provides coverage for financial loss and expenses that businesses may suffer due to a Cyber Event, including cyber-attacks from malware or other invasive software, cyber extortion, and social engineering. Cyber insurance generally covers your business' liability for a data breach involving sensitive customer information, such as Social Security numbers, credit card numbers, account numbers, driver's license numbers, and health records.
What you should consider?
Businesses that handle sensitive customer information, finance, banking, healthcare service providers, and IT services must take a dedicated cyber risk insurance policy. With cyber hacks and data breaches dominating the headlines every day, business leaders are becoming more concerned than ever about hackers and other data security breaches. This global threat is twice as troublesome for accounting firm leaders, who face the twofold challenge of not only safeguarding their own information as a business but also protecting their clients' information. Any security breach in your business's technology can set you back financially, and even worse, you could suffer from mental disturbance. Therefore, it's always prudent to protect your business with the best cyber risk insurance policies to deal with all the consequences that may occur due to any malfunction in technological security issues.
Did you know?
4740 cyber security incidents were reported in 2019.
(Cert NZ, 2019 Summary)
Scams and fraud accounted for $14.5 million (87%) of the total financial loss reported in 2019.
(Cert NZ, 2019 Summary)
Phishing and credential harvesting reports, up 25% on 2018.
(Cert NZ, 2019 Summary)
Comprehensive Cyber Liability Coverage Options
First-Party Coverage
- Data breach/privacy crises coverage
- Legal costs, court attendance, and regulatory fines coverage.
- Cyber extortion coverage, including ransom payment and the costs of a specialized negotiator.
- Coverage for expenses related to the management of an incident, such as legal and forensic services to determine whether a breach occurred and assist with regulatory compliance if a breach is confirmed.
- Coverage for loss of revenue or business interruption resulting from a cyber-attack.
- Public relations and crisis management coverage.
- Coverage for costs involved in managing a crisis and data loss recovery.
Extra Expenses Coverage
- Coverage for the costs of notifying customers of a security breach and monitoring their credit card details to prevent further attacks.
- Coverage for the costs of managing a crisis caused by cyber hackers.
Third-Party Liability
- Network security liability coverage.
- Coverage for third-party damages resulting from denial of access, including the costs related to data on third-party suppliers and the costs related to the theft of data on third-party systems.
- Media/Multimedia liability coverage.
- Coverage for third-party damage, including intellectual property rights infringement and website defacement.
What can it cover?
Some of the potential benefits of Cyber Liability insurance policies include:
| Type of Cover | Potential benefits |
|---|---|
| Cyber-attack costs | The costs of a cyber-attack, such as hiring negotiation experts, covering extortion demands, and preventing future threats. |
| Financial loss coverage | Coverage for financial loss you may suffer as a result of a cyber-attack. |
| Legal defense costs | Coverage for the legal costs of defending claims. |
| Data recovery | The costs of recovering or replacing your records and other business data. |
| Reputation damage | Coverage for damages to your reputation resulting from data breaches, such as loss of third-party data held on your system. |
| Regulatory fines | Covers legal expenses and fines arising from investigation by a government regulator. |
What is usually not covered?
CASE STUDY
Your employee opens an infected email attachment that triggers a ransomware virus, causing your systems and data to be blocked. Rather than paying the ransom, you hire IT consultants to recover your data and upgrade your antivirus software. It takes a week to apply these fixes, during which you have to close your business, losing revenue and damaging your reputation with clients. One client threatens to sue you for the delay and financial loss.
Thankfully, you have a Cyber Protection Insurance policy that helps you recover some of the costs incurred during this incident. Depending on your policy, you may be able to make a claim for losses caused by the interruption to your business, the costs of recovering your data and upgrading your software, and ongoing crisis management expenses. This policy can provide much-needed financial relief in the aftermath of a cyber attack, allowing you to focus on getting your business back on track.
Why choose FG Insurance?
Peace of Mind at Affordable Rates, Flexible Plans, 24/7 Roadside Assistance, Fast and Simple Claim Service, Modern Policy Wordings, Competitive Pricing