Many businesses both small and large are under constant threat of cyberattacks. When a business falls victim to a cyberattack and their data was breached, often the business does not survive the attack and must close their doors. Not just small businesses close, but even large companies can fall due to a data breach. Protecting your business data and your clients or customer information is a priority. However, even with the best cyber defense, a business can be vulnerable to cyberattacks. To help protect your business from a cyberattack and the damage of data breaches, it is highly recommended that you get Cyber insurance. InsureWise will share what cyber insurance covers and why it is important for a business to have cyber liability insurance!
What is the Meaning of Cyber Insurance?
Cyber liability, also referred to cybersecurity, cyber insurance, or data breach insurance is designed to cover a business that has suffered losses after a cyberattack. Cyber insurance has its base coverage as well as other supplemental coverages you can add to your insurance policy at your own discretion. There are first-party and third-party coverages. The first-party applies when there is direct lost due to a cyberattack. The third-party coverage will cover the cost to your clients or customers that experienced losses due to the cyberattack. Third-party coverage also protects the company if the client or customer has had their information stolen, and they file a lawsuit against the company.
What are the Different Types of Cyber Insurance?
Cyber insurance has a number of different types of coverages and each varies on how they can help protect the company from a cyber event. Following are some of the different types of cyber insurance coverages.
Privacy Liability Coverage – For businesses that inputs employee, customer or client data and or personal information, cyber privacy liability is a very important coverage and is essential to many businesses. If your business data has been breached, the stolen data can threaten your business. If the company lost personal information on an employee or customer they can file a consumer class action litigation. If this occurs, your third-party coverage privacy liability coverage will cover the cost of the lawsuit. A privacy liability coverage as part of your cyber insurance will help protect the information and privacy data if stolen during a cyberattack.
Network Security Coverage – Just about any business should include network security coverage as part of their cyber insurance. If the network security fails, the cyber insurance will cover business email compromises, cyber extortion or ransom, data breaches, malware infections and more. Network security coverage is part of the first-party coverage cost and will protect you from a direct attack to the business or company.
Network Business Interruption Coverage – When a business depends on technology to operate, you will want to include network business interruption coverage. If the system gets compromised due to a cyberattack, you will need to cover the losses. Many companies depend on its network and if it fails due to a cyberattack, they will need help covering lost profits, fixed expenses, and other financial impacts.
Cyber Small Business Insurance Policies & More in Las Vegas, Henderson, Reno, North Las Vegas, Summerlin, Paradise, Spring Valley, Sunrise Manor, Enterprise, Sparks, Carson City & State of Nevada
There are a lot of different types of cyber coverages that you can add to ensure your company is properly protected from a cyberattack. If you need help getting a sound cyber insurance policy, contact InsureWise today or click here to submit a quick and easy quote form.