Cyber Liability Insurance: An Essential Coverage in The Internet Age
We now live in an era where we all depend on the internet almost every second of the day. Our businesses have been fully or partially automated, giving us control even if we are thousands of kilometers away from our physical offices.
Despite all of the good the internet has done to how we conduct business and live, it has opened us to a new dimension of risk. Between January 2005 to May 2020, there have been close to 12,000 recorded cases of breaches.
According to Cybint, 85% of cybersecurity breaches stem from human errors. It’s also interesting to know that majority of businesses don’t have dedicated personnel to respond to cybersecurity issues.
You’ll agree that cybersecurity issues have become a daily struggle for businesses globally. This is why companies have to start giving a thought to an extra layer of coverage through Cyber Liability Insurance coverage.
What is Cyber Liability Insurance?
With its origins in Errors and Omissions Liability insurance, Cyber Liability Insurance is relatively novel and emerging. It’s a coverage that reduces the financial risks that stem from data breaches, hacking, and all other forms of cyber attacks.
The intent is to help minimize the negative impact that any compromise, loss, or theft of electronic data could have on a business. Cybersecurity Liability Coverage caters for the following;
Legal fees and compensation for privacy violations
Meeting the extortion demands of the attackers
Notification of customer of data breaches
Hiring computer forensics in recovering compromised data
Recovering altered and stolen data
Restoring of the PII of the customer after a breach
Who Needs Cyber Liability Insurance?
There’s hardly any business that doesn’t need cyber insurance coverage. Any business that stores sensitive customer, partner, or client information; and supports online financial transactions require cyber liability coverage.