{"id":2806,"date":"2023-02-15T16:33:36","date_gmt":"2023-02-15T21:33:36","guid":{"rendered":"https:\/\/doereninsurance.com\/?p=2806"},"modified":"2023-08-29T14:43:10","modified_gmt":"2023-08-29T18:43:10","slug":"a-guide-to-cyber-liability-insurance","status":"publish","type":"post","link":"https:\/\/doereninsurance.com\/news\/a-guide-to-cyber-liability-insurance\/","title":{"rendered":"A Guide to Cyber Liability Insurance"},"content":{"rendered":"

[vc_row row_height_percent=”0″ override_padding=”yes” h_padding=”2″ top_padding=”2″ bottom_padding=”1″ overlay_alpha=”50″ gutter_size=”3″ column_width_percent=”100″ shift_y=”0″ z_index=”0″ uncode_shortcode_id=”117096″ shape_dividers=””][vc_column width=”1\/1″][vc_single_image media=”2824″ media_width_percent=”100″ uncode_shortcode_id=”655310″][vc_column_text uncode_shortcode_id=”149819″]As cyber threats continue to become more frequent and sophisticated, businesses of all sizes are facing increasing challenges in safeguarding their assets, employees, and clients. In 2020 alone, the cyber security industry exceeded $145 billion in revenue with forecasts reaching $10.5 trillion by 2025. These sobering numbers illustrate the massive threats posed by cyber crimes, such as phishing, malware, supply chain attacks, and more.<\/p>\n

What\u2019s more, according to the National Cybersecurity Alliance<\/a>, recent surveys found that \u201c57% of SMBs believe they won\u2019t be targeted by online criminals<\/strong>\u201d but small businesses are \u201cthree times more likely to be targeted by cybercriminals than larger companies.<\/strong>\u201d[\/vc_column_text][\/vc_column][\/vc_row][vc_row unlock_row=”” row_height_percent=”0″ back_color=”gray” overlay_alpha=”50″ gutter_size=”3″ column_width_percent=”100″ shift_y=”0″ z_index=”0″ uncode_shortcode_id=”104182″ back_color_type=”uncode-palette” shape_dividers=””][vc_column column_width_percent=”100″ position_vertical=”middle” align_horizontal=”align_center” gutter_size=”2″ style=”dark” overlay_alpha=”50″ shift_x=”0″ shift_y=”0″ shift_y_down=”0″ z_index=”0″ medium_width=”0″ mobile_width=”0″ width=”1\/1″ uncode_shortcode_id=”876117″][vc_custom_heading heading_semantic=”h3″ text_size=”h3″ uncode_shortcode_id=”792805″]Did You Know?[\/vc_custom_heading][vc_column_text text_lead=”yes” uncode_shortcode_id=”527449″]In a 2022 IT Compliance Benchmark Report, 63% of respondents reported that they experienced a data breach. 44% of companies that reported a data breach experienced a loss between $1M and $5M.<\/small>[\/vc_column_text][vc_column_text uncode_shortcode_id=”111322″]Source: Hyperproof<\/a><\/small>[\/vc_column_text][\/vc_column][\/vc_row][vc_row row_height_percent=”0″ override_padding=”yes” h_padding=”2″ top_padding=”1″ bottom_padding=”1″ overlay_alpha=”50″ gutter_size=”3″ column_width_percent=”100″ shift_y=”0″ z_index=”0″ uncode_shortcode_id=”100247″ shape_dividers=””][vc_column width=”1\/1″][vc_column_text uncode_shortcode_id=”952533″]At Doeren Mayhew Insurance Group, we arm our clients with cyber insurance ahead of being forced to address the complexities that come with these crimes. We take a comprehensive approach in helping to protect organizations that are vulnerable to cyber attacks. These include businesses that store large volumes of personal data, depend on technology to successfully operate, or need to be in compliance with data security provisions.<\/p>\n

What is Cyber Liability Insurance Coverage?<\/h2>\n

In the digital age, businesses are increasingly relying on technology to run their operations. However, this reliance also means that businesses are exposed to a growing number of digital risks, from cyber attacks and data breaches to system failures and social engineering. Cyber liability insurance is designed to help businesses protect themselves from these risks by providing coverage for costs associated with responding to and mitigating the impact of a cyber event.<\/p>\n

Cyber insurance is a type of commercial liability insurance that covers financial losses caused by cyber threats. While it doesn\u2019t cover things like costs associated with system upgrades, decreased valuation, and future financial losses, it can cover other areas of risk, including those outlined below.<\/p>\n

Types of Cyber Insurance Coverage<\/h2>\n

[\/vc_column_text][\/vc_column][\/vc_row][vc_row row_height_percent=”0″ override_padding=”yes” h_padding=”2″ top_padding=”1″ bottom_padding=”0″ overlay_alpha=”50″ gutter_size=”3″ column_width_percent=”100″ shift_y=”0″ z_index=”0″ uncode_shortcode_id=”206545″ shape_dividers=””][vc_column width=”1\/2″][vc_column_text uncode_shortcode_id=”158332″]<\/p>\n

Breach Response & Remediation<\/h3>\n

This coverage pays for the costs of responding to a data breach or cyber attack, such as hiring a forensics expert to investigate the breach, notifying affected customers, and providing credit monitoring services.[\/vc_column_text][\/vc_column][vc_column width=”1\/2″][vc_column_text uncode_shortcode_id=”131231″]<\/p>\n

Ransomware, Cyber Extortion & Payment Provision<\/h3>\n

This coverage pays the ransom demands of cyber criminals if a business’s data is encrypted and held hostage. Payment provision coverage is also available which would pay the ransom, without requiring the business to fund the payment.[\/vc_column_text][\/vc_column][\/vc_row][vc_row row_height_percent=”0″ override_padding=”yes” h_padding=”2″ top_padding=”2″ bottom_padding=”0″ overlay_alpha=”50″ gutter_size=”3″ column_width_percent=”100″ shift_y=”0″ z_index=”0″ uncode_shortcode_id=”358237″][vc_column width=”1\/2″][vc_column_text uncode_shortcode_id=”182927″]<\/p>\n

Cyber Business Interruption<\/h3>\n

This coverage provides financial compensation for lost income if a business is forced to shut down temporarily due to a cyber event.[\/vc_column_text][\/vc_column][vc_column width=”1\/2″][vc_column_text uncode_shortcode_id=”578452″]<\/p>\n

Dependent Business Interruption<\/h3>\n

This coverage provides financial compensation for lost income if a business’s supply chain is disrupted by a cyber event, affecting one or more of its suppliers.[\/vc_column_text][\/vc_column][\/vc_row][vc_row row_height_percent=”0″ override_padding=”yes” h_padding=”2″ top_padding=”2″ bottom_padding=”0″ overlay_alpha=”50″ gutter_size=”3″ column_width_percent=”100″ shift_y=”0″ z_index=”0″ uncode_shortcode_id=”358237″][vc_column width=”1\/2″][vc_column_text uncode_shortcode_id=”129692″]<\/p>\n

System Failure<\/h3>\n

This coverage pays for the costs of restoring a business’s computer systems and data after a failure, such as a software bug or hardware malfunction.[\/vc_column_text][\/vc_column][vc_column width=”1\/2″][vc_column_text uncode_shortcode_id=”553235″]<\/p>\n

Dependent System Failure<\/h3>\n

This coverage pays for the costs of restoring a business’s computer systems and data if the failure was caused by a supplier’s systems.[\/vc_column_text][\/vc_column][\/vc_row][vc_row row_height_percent=”0″ override_padding=”yes” h_padding=”2″ top_padding=”2″ bottom_padding=”0″ overlay_alpha=”50″ gutter_size=”3″ column_width_percent=”100″ shift_y=”0″ z_index=”0″ uncode_shortcode_id=”358237″][vc_column width=”1\/2″][vc_column_text uncode_shortcode_id=”380096″]<\/p>\n

Cyber Crime<\/h3>\n

This coverage pays for the costs of responding to cyber crime, such as fraud committed using the business’s computers or data.[\/vc_column_text][\/vc_column][vc_column width=”1\/2″][vc_column_text uncode_shortcode_id=”187045″]<\/p>\n

Digital Asset Damage<\/h3>\n

This coverage pays for the costs of restoring or replacing digital assets that are damaged or destroyed as a result of a cyber attack or system failure.[\/vc_column_text][\/vc_column][\/vc_row][vc_row row_height_percent=”0″ override_padding=”yes” h_padding=”2″ top_padding=”2″ bottom_padding=”0″ overlay_alpha=”50″ gutter_size=”3″ column_width_percent=”100″ shift_y=”0″ z_index=”0″ uncode_shortcode_id=”358237″][vc_column width=”1\/2″][vc_column_text uncode_shortcode_id=”263156″]<\/p>\n

Privacy Liability<\/h3>\n

If confidential or private data is governed by a regulatory agent, privacy liability insurance will help cover compensation requests in the event that information is stolen. These third-party expenses may come out of contractual liabilities or regulatory assessments.[\/vc_column_text][\/vc_column][vc_column width=”1\/2″][vc_column_text uncode_shortcode_id=”965949″]<\/p>\n

Invoice Manipulation<\/h3>\n

This coverage pays for the costs of responding to invoice manipulation, such as when a cyber criminal alters an invoice to divert funds to their own account.[\/vc_column_text][\/vc_column][\/vc_row][vc_row row_height_percent=”0″ override_padding=”yes” h_padding=”2″ top_padding=”2″ bottom_padding=”0″ overlay_alpha=”50″ gutter_size=”3″ column_width_percent=”100″ shift_y=”0″ z_index=”0″ uncode_shortcode_id=”358237″][vc_column width=”1\/2″][vc_column_text uncode_shortcode_id=”132859″]<\/p>\n

Social Engineering<\/h3>\n

This coverage pays for the costs of responding to social engineering attacks, such as phishing scams or vishing (voice phishing) attacks.[\/vc_column_text][\/vc_column][vc_column width=”1\/2″][vc_column_text uncode_shortcode_id=”138106″]<\/p>\n

Client Funds<\/h3>\n

This coverage pays for the costs of restoring client funds that are stolen or misappropriated as a result of a cyber event.[\/vc_column_text][\/vc_column][\/vc_row][vc_row row_height_percent=”0″ override_padding=”yes” h_padding=”2″ top_padding=”2″ bottom_padding=”0″ overlay_alpha=”50″ gutter_size=”3″ column_width_percent=”100″ shift_y=”0″ z_index=”0″ uncode_shortcode_id=”358237″][vc_column width=”1\/2″][vc_column_text uncode_shortcode_id=”159003″]<\/p>\n

Telephone Hacking<\/h3>\n

This coverage pays for the costs of responding to telephone hacking, such as when a cyber criminal gains access to a business’s telephone system and uses it for malicious purposes.[\/vc_column_text][\/vc_column][vc_column width=”1\/2″][vc_column_text uncode_shortcode_id=”291482″]<\/p>\n

Errors & Omissions (E&O)<\/h3>\n

This coverage provides protection when a business faces allegations of negligence or breach of contract when a cyber attack disrupts regular operations. Albeit temporary, this type of service interruption could lead to costly claims that can be mitigated with E&O coverage.[\/vc_column_text][\/vc_column][\/vc_row][vc_row row_height_percent=”0″ override_padding=”yes” h_padding=”2″ top_padding=”2″ bottom_padding=”0″ overlay_alpha=”50″ gutter_size=”3″ column_width_percent=”100″ shift_y=”0″ z_index=”0″ uncode_shortcode_id=”358237″][vc_column width=”1\/2″][vc_column_text uncode_shortcode_id=”150347″]<\/p>\n

Breach Response (Outside the Limit)<\/h3>\n

This coverage provides additional funds for breach response and remediation if the costs exceed the coverage limit of the main policy.[\/vc_column_text][\/vc_column][vc_column width=”1\/2″][vc_column_text uncode_shortcode_id=”193566″]<\/p>\n

Reputational Harm<\/h3>\n

This coverage pays for the costs of restoring a business’s reputation if it is harmed as a result of a cyber event.[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column width=”1\/1″][vc_separator sep_color=”” uncode_shortcode_id=”196646″][vc_column_text uncode_shortcode_id=”133780″]It’s important to note that not all cyber liability insurance policies offer the same coverage, and the specific coverage options available can vary depending on the insurance carrier and policy. Businesses should carefully review their policy to understand the coverage they have and consider purchasing additional coverage, if necessary.<\/p>\n

How Much Does Cyber Liability Insurance Cost?<\/h2>\n

These commercial policies are typically scaled to meet a business\u2019 unique needs. The cost of a business\u2019s cyber liability insurance premium is determined by a number of factors, including:<\/p>\n