Everything You Need To Know About Cyber Liability Insurance

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Does your business have cyber liability insurance? If not, you may be putting yourself at risk. Read on to learn more about this necessary type of insurance and how to protect yourself from threats.

One of the groups that benefitted from the COVID-19 worldwide outbreak is cybercriminals. Overall, the number of cybercrime cases has increased by nearly 300% since the start of the Covid-19 pandemic.

Cyber liability insurance financially protects you in the event of a data breach. This can include customer information, employee information, and even trade secrets.

Cyber liability insurance can help you pay for the costs associated with a data breach, including legal fees.

In today’s digital age, it’s more important than ever for businesses to have cyber liability insurance.

• Why you should Invest in Cyber Liability Insurance
• Finding the Right Coverage
  • First-party coverage
  • Third-party coverage
• A good cybersecurity team prevents cyber attacks before they happen
• Benefits of Nexigen’s managed security team
• Nexigen’s proprietary Cybersecurity Framework

Quick Facts:

• Small businesses account for over 40% of cyberattack targets.
• In the past 12 months, over 60% of small businesses have experienced a cyberattack.
• Research has shown that over 45% of small businesses say their cyber security processes are ineffective at mitigating attacks.

They protect organizations against malicious attacks, and Nexigen recommends a multi-prong strategy. In addition to reducing your risk with a comprehensive cybersecurity plan, we recommend that you consider Cyber Liability Insurance (CLI). Cyber Liability Insurance covers the financial loss that results from cyberattacks such as data breaches.

Cyber liability insurance can protect your business from financial ruin in the event of a security incident. In the event of a severe data breach, good cyber liability insurance could cover:

• Cost of downtime
• Cost of investigation
• Cost of recovering data
• Cost of legal procedures
• Cost of notifying stakeholders about the incident
• Cost of restoring the personal identities of those affected

You need insurance to protect your property and employees as a business owner. But what about your online assets? Any business with cyber exposure can benefit from cyber liability coverage. You should get cyber liability insurance if your business stores sensitive information online, such as health or personal data.

Here are four reasons why you should invest in cyber liability insurance.

Legal defense: Depending on the severity of the attack, your business may need legal help. Legal counsel for a cyber attack is typically pretty costly. Cyber insurance is an affordable way to cover the cost of legal assistance following a cyber breach.

Lost income: Data breaches aren’t cheap. If a cyberattack forces your business to shut down, you could lose thousands or even millions of dollars. You may need to purchase new hardware if the attack causes permanent damage to your systems.

Ransom: If someone holds your data hostage and demands payment to get it back, that’s called extortion. Some cyber insurance policies cover the cost of investigating such incidents and any expenses incurred in recovering the data.

Reputation: False information about your company that’s shared online can hurt your business’s credibility. Cyberbullying and other forms of online harassment can be covered by some cyber insurance policies.

While many insurance providers offer plenty of general liability coverage options. Some insurance providers don’t provide a comprehensive cyber liability coverage plan. When researching a business, Nexigen recommends looking for insurance providers rated highly by the most reputable insurance rating agency. Nexigen has personal interactions and recommends the following carriers:

• RiskSource – Cincinnati Based Insurance organization with over 4000 clients nationally. https://risksource.com
• McGriff – McGriff is part of Truist Insurance Holdings, Inc., one of the world’s top 10 largest insurance brokers. https://www.mcgriff.com

You’ll also want to ensure your cyber security liability insurance plan includes the following:

First-party coverage:

• Network security and privacy liability: Covers breach response costs like forensic investigations, public relations, credit monitoring, legal fees, and fines/penalties
• Business interruption losses and extra expenses: Covers lost revenue and added costs to continue business
• Digital data recovery and cyber extortion expenses: Covers losses such as ransom paid due to ransomware

Third-party coverage:

• Cyber liability: Covers claims of lawsuit expenses resulting from breaches in client systems or networks
• Media liability: Covers claims of libel, copyright/trademark infringement, etc., resulting from media use
• Cybercrime coverage: Covers losses from digital theft of money or securities and social engineering fraud.

Nexigen’s cybersecurity experts are unmatched in their ability to combat every cyber threat. Complete visibility allows you to take back the advantage during this war against hackers!

Please reach out to learn more from our cybersecurity team. Our security experts can help you build a proactive cybersecurity plan for your company.

Layered security – Nexigen security services watch multiple threat surfaces that attackers would use to gain access to systems. Nexigen has you covered at every layer.

Proactive Security – Nexigen security services stop events before they become incidents with our leading technologies and experienced team.

Absolute Visibility – Customers will gain total visibility through a state-of-the-art client portal, customer dashboards, and reporting.

We are always available – Part of what makes our managed security so exceptional is that we are always available.

• Identify issues proactively
  • We run audits, pen testing, and vulnerability scans
• Protect your data
  • With endpoint protection, training, and policy enforcement
• Detect threats
  • With endpoint detection and response, antivirus and honey pots
• Respond aggressively
  • A security team investigation, custom recovery tools, and digital forensics
• Recover your data swiftly
  • 24/7/365 system restores, server recovery, desktop recovery, and continuous monitoring.

Nexigen’s cybersecurity team is second to none in its ability to prevent cyberattacks before they happen. Our complete visibility into the dark web and hacker activity allows us to take back the advantage and protect your business against every possible threat. Learn more about how we can help you build a proactive cybersecurity plan to keep your data safe.

Read more about our Cyber Security Consulting practice.