What Is Cyber Insurance?

Cyber insurance is a specially-designed policy that covers the liability of your business if a data breach occurs that involves the data of customers. Examples of the sensitive data include health records, Social Security numbers, numbers associated with a state issued ID or a driver’s license, account numbers, bank information, and credit card and debit card numbers. 

Why Is Cyber Insurance Necessary?

Cyber crime prevalence is drastically increasing. In the past decade, these crimes have resulted in many implications – such as fines and fees – for major corporations, retailers, banks, health insurers, and even the government.

According to statistics, approximately 55% of all small businesses have also experienced some type of data breach. These breaches put employees and consumers at risk.

Additionally, they can negatively impact the reputation of a business or organization. Cyber insurance aids in offsetting the negatively consequences of cybercrimes. 

What Does Cyber Insurance Cover?

Cyber insurance will aid a business with the expenses and legal fees that they incur as a result of a cybercrime. In addition to this, the insurance will help in notifying consumers if a breach occurred. It aids in recovering any information that has been compromised. It will repair computer systems and other electronics that has been damaged.

Additionally, it covers the restoration of the personal identifies of any impacted customers. It may even help in providing credit monitoring services that companies may provide to their employees and customers. 

Will General Liability Cover Cybercrimes?

General liability is designed to cover any bodily injury or any type of property damage that stems from operations of a business, services of a business, or the products of a business. Cybercrime coverage is typically excluded.

However, as time progresses, many insurance companies may start to offer cybercrime coverage as part of general liability. Currently, this is not a common practice. 

What Are the Benefits to Cyber Insurance?

Cyber insurance is a special policy that is tailored to each business and their individual needs. The benefits are immense. These include the following:

  • The insurance will provide coverage in the event of a data breach. 
  • Cybercrimes have the potential to lead to a disruption in the operations of a business. Cyber insurance provides loss reimbursement if these disruptions occur. 
  • Cyber insurance is set up to recoup losses related to any type of cyber extortion. 
  • Forensic support is provided through cyber insurance. 
  • Legal support is provided should a cyber incident occur within a business. 
  • This provides extended coverage outside of the general liability policy that a business has in place. 

Contact Us Today 

If you have a need for insurance for your business, we here at Modica Associates can assist you. We will collaborate with you to determine the best policies and coverages for your business.

Our commercial insurance coverages include construction, property, business, business loss, and transportation.

Many of the companies that we work with do offer cyber insurance coverage, too. For more information or to get started, we encourage you to contact us now by calling: 718-855-1836

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