Who Needs Cyber Security Insurance?
Many organizations have integrated new technology in recent years. These advancements may help employers manage daily operations more efficiently and pursue innovations. However, while new technology can be an exciting way to optimize parts of a company, employers should also know how these implementations may create new risks and exposures or exacerbate existing ones. Fortunately, a cyber security insurance policy from AnderGray Insurance Services can provide robust and diverse financial security.
What Is Cyber Security Insurance?
Also known as cyber liability insurance or cyber insurance, cyber security insurance is a highly advisable component of most organizations’ loss control measures. Following a data breach or other cyber incident, an adequate cyber security insurance policy can provide critical financial assistance and limit out-of-pocket losses that might otherwise be devastating.
What Does Cyber Security Insurance Cover?
Without adequate coverage, cyber incidents can have catastrophic financial consequences for employers of all sizes and sectors. Although the capabilities and limitations of coverage may vary, cyber security insurance policies can generally help pay for the following:
- Incident response costs—This may include expenses related to notifying affected parties and investigating the incident.
- Services for affected parties—This coverage can help pay to provide credit and fraud monitoring services for third parties whose data has been compromised.
- Recovery services—If an organization needs to hire outside help to manage the aftermath of a cyber incident, such as a public relations firm or IT consultants, this coverage can provide financial assistance.
- Business interruption costs—This may include compensation for lost or reduced income due to delays or stoppages in an organization’s normal operations.
- Cyberextortion—If a cybercriminal takes advantage of a situation to extort a company, such as by using ransomware, this coverage can help pay them off.
- Fines and legal costs—This coverage can insulate policyholders from the financial ramifications of noncompliance fines or lawsuits.
Who Needs Cyber Security Insurance?
Given the increasing use of workplace technology and the ever-increasing quantity of data stored electronically, most organizations should consider cyber security insurance a high priority. Sufficient coverage may be of particular importance for businesses that are heavily dependent on technology; have large customer bases; or that store, transmit, or otherwise manage private and sensitive information, such as the following:
- IT services
- Health care organizations
- Financial professionals
- Retail businesses
- Real estate agents
Get the Right Coverage
As technology has become more deeply ingrained in modern workplaces, cybercriminals have kept pace, enhancing and adapting their methods while increasing the frequency of their attacks. Nowadays, it may take only one error from a single employee for a perpetrator to gain access to sensitive information and company systems, potentially wreaking havoc in mere minutes.
The knowledgeable staff at AnderGray Insurance Services is dedicated to ensuring that doesn’t happen. Our agents are well-equipped with over 30 years of experience protecting the financial interests of businesses across the United States. Visit our website or call 213-769-8001 to get started today.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.
Categories: Cyber Liability