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Cyber Security Insurance: What is it and do I need it?

With data breaches growing in frequency and severity, cyber liability insurance has never been more popular.

What is Cyber Security Insurance?

Cyber Security insurance is a lot like liability insurance. Most people actually think that their business liability insurance covers cyber-attacks when in fact most policies specifically exclude cyber-attacks. Cyber Security Insurance is meant to mitigate losses from incidents such as data breaches, network damage, and damage from hackers or malware like Ransomware. Cyber Security Insurance is ultimately just another liability insurance that covers Cyber Incidents!

What types of business should have Cyber Security Insurance?

In short, every business that stores data should have Cyber Security Insurance. If you store names and addresses, phone numbers, legal documents, financial documents, patient info, etc… you need Cyber Security Insurance. This means Lawyers, Doctors, Accountants, and pretty much anyone else. Check out the HIPAA journal to see a list of medical practices with breaches could be covered by this. Another good example would be a Accountant whose server was hacked and all the financial data stolen, now someone has bank accounts, credit cards, tax info, etc… the accountant would be liable. This type of insurance would help mitigate the losses. If you ask us, we will tell you that every business needs Cyber Security Insurance!

 

Here is a good article from the Department of Homeland Security about this topic: https://www.dhs.gov/cisa/cybersecurity-insurance