Cybersecurity insurance is a new type of business insurance. It is analogous to product liability for companies that sell digital products. At Jankowski Agency Inc., it’s important to us that you and your business stay safe during these emerging times. Read on to learn more about what is Cyber Insurance, how does it work, and why do you need it.
Cybersecurity insurance, also called cyber liability insurance or cyber insurance, is a contract that an entity can purchase to help reduce the financial risks associated with doing business online.
While some cyber insurance policies contain specific provisions for the loss of third-party data, such as customer credit card numbers; customers needing such protection can purchase a cyber insurance policy that covers it.
What is Cyber Insurance?
Cyber insurance policies help cover the financial losses that result from cyber events and incidents. In addition, cyber-risk coverage helps with the costs associated with remediation, including payment for the legal assistance, investigators, crisis communicators, and customer credits or refunds.
Do I Need Cyber Insurance?
The loss, compromise or theft of electronic data can have a negative impace on a business, including the loss of customers and revenue. Businesses may be liable for damages stemming from the theft of third-party data. Cyber liability coverage is important to protect businesses against the risk of cyber events, including thos associated with terrorism. Cyber-risk coverage can assist in the timely remediation of cyberattacks and incidents.
“There are approximately 300,000 reported malicious cyber incidents per year. Attacks cost the U.S. economy anywhere from $57 billion to $109 billion annually and these costs are increasing.”thirdway.org
Cyber risk is realand let’s face it: almost everyone uses some kind of cyber technology every day. In an era when email is used for everything, and transactions often occur online, the world of cyber presents a great opportunity for criminals.
“Insurance experts now consider the risk of cyber liability losses to exceed the risk of fraud or theft. In this tumultuous environment, your business can take several steps to limit risks, including purchasing cyber liability insurance.”Insurance Information Institute