Since the days of the industrial revolution, new manufacturing process and technical innovations have brought new insurance risks never previously considered. In the modern age of IT and the use of electronic data instead of hard copies in filing cabinets, a new risk of cyber liability has grown leaving business vulnerable to loss of data and criminal activity, where even the threat of data being released into the public domain can result in extortion risks. Businesses need to understand the total cost and penalties that could follow such a breach of data, and exactly how they can limit the reputational risks.
Most companies would have a disaster recovery plan for losses following a fire, theft, water damage and business interruption, but how do you handle a cyber liability claim?
Using experts skilled in cyber security and backing this up with a robust insurance policy, businesses can access specialist assistance and financial cover should the worst happen and data is hacked or stolen.
Cyber or data loss can take many forms and insurance policies can now protect companies from:
- Data breach notification costs
- Information and communication asset rectification costs
- Regulatory and penalty costs
- Public relations costs
- Forensic costs
- Credit monitoring costs
- Cyber business interruption
- Cyber extortion
Remember businesses of all sizes and in all sectors are vulnerable to these types of risks and it is certainly worth investigation the cost of such cover, which in most cases it not prohibitive.
For more information about Cyber Liability Insurance: