BUSINESS INSURANCE
Cyber Insurance
Cyber Insurance Protects Your Business from Losses Due to Data Breaches and More
We have all either read about or been victim to cyber crimes. Whether it is an online scam, a social media hack or unauthorized credit card charge, these crimes have become commonplace for almost everyone. Businesses are unfortunately, no exception and most major companies will experience data breaches or hacks at least once (if not more) in their lifetime.
Business insurance policies will not automatically cover these exposures. So how do you protect your business and your customers? Keep reading to learn everything you need to know about cyber insurance.
What is Cyber Insurance?
Cyber Insurance is the coverage that protects businesses against financial losses due to cyber-related events. This type of insurance is critical for almost all businesses but especially those who handle customers’ personal data such as dates of birth, addresses, credit card information, social security numbers, or other personally identifiable information.
What Does Cyber Insurance Cover?
Cyber insurance provides both first and third-party coverage for businesses to recoup losses in the event of certain cyber events. Some of these events may include:
- Data breaches
- Cyberattacks
- Hacking
- Ransom attacks
When these events occur, cyber liability insurance, (also known as third-party coverage), is typically the coverage that can protect your business from the most financially significant losses. Cyber liability can pay for the costs associated to notify customers of the breach, any legal fees in the event your business is sued, and any regulatory fines incurred.
First-party cyber insurance is just as important and will typically pay for the losses that directly affect the business. Examples of these expenses include lost business income and investigation of the incident to understand what went wrong to prevent it from happening again.
What Does Cyber Insurance Not Cover?
While most businesses can benefit from cyber insurance, it’s critical to note that there are some things it will not cover. Most notably, cyber insurance will generally not cover any property damage. For example, if there was a cyber incident that resulted in hardware damage, cyber insurance will not provide any coverage. Typically, this and other property damage is covered under a commercial property insurance policy.
As with many other insurance policies, cyber insurance will not cover any illegal or intentional activities or any preventative/maintenance measures taken by businesses.
How Do I Know If I Need Cyber Insurance?
While one could argue that every business needs cyber insurance, there are some particular businesses that may want to purchase this coverage. As mentioned previously, cyber insurance is critical for businesses that handle customers’ personally identifiable information. But they are also important for businesses that work in industries where certain information is highly regulated, such as healthcare, insurance, or education.
If you’re not entirely sure if you need this type of coverage or are unclear on where to start looking, contact us for assistance. The Craven Agency can help determine the right coverage for your business!
Contact The Craven Agency today! Serving Shreveport, Bossier City, Minden, Ruston, Monroe and the surrounding communities in Louisiana and the Ark-La-Tex regions.
- Business Interruption Insurance
- Business Interruption & Extra Expense Insurance
- Business Owner's Policy (BOP)
- Business Personal Property (BPP)
- Commercial Crime Insurance
- Cyber Insurance
- Employment Practices Liability Insurance (EPLI)
- Home Based Business Insurance
- Professional & General Liability Insurance
- Surety Bonds
- Worker's Compensation
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We'd love to talk through any of your business or personal needs and build the right insurance policy for you.
