Get more information about protecting your business with Cyber Liability Insurance
Why Cyber Liability Insurance?
Cyber Liability Insurance has become a necessity for every business regardless of industry due to the pervasive and growing use of computers. The 2018 Ponemon Institute Cost of Data Breach Study calculates the average cost of a compromised record is $148 and it took organizations 196 days, on average, to detect a data breach. The study goes on to report that the total cost of a breach ranges from $2.2 million for incidents with fewer than 10,000 compromised records to $6.9 million for incidents with more than 50,000 compromised records.
Data Theft or Cyber Extortion Liability Claim
A U.S. based information technology company contracted with an overseas software vendor. The vendor left certain “administrator” defaults on the company’s server and a “hacker for hire” was paid $20,000 to exploit the vulnerability. The hacker demanded an extortion payment, otherwise he would post records of millions of registered users on a blog available for all to see. The extortion expenses and payments are expected to exceed $2,000,000.
Cyber Liability Claims Examples
While small businesses are increasingly at risk of a cyber attack, unfortunately, this is not the only threat. Here are some of the most common types of incidents resulting in a cyber or data breach claim:
- Denial of Service Attacks
- Cyber Extortion
- Stolen Laptops
- Disgruntled/Rogue Employees
- Fake emails/Phishing attacks
Common Cyber Liability Insurance Coverages by Black Insurance Group:
- Loss of Digital Assets Coverage
- Non-physical Business Interruption and Extra Expense
- Cyber Extortion
- Cyber Terrorism
- Security Event Costs
- Network Security and Privacy Liability
- Employee Privacy Liability
- Electronic Media Liability