In the modern digital age, your business may increasingly rely on technology and cyber solutions. However, these conveniences and advancements may include various risks and exposures for which you must account. Fortunately, cyber insurance, also known as cyber liability insurance, can provide versatile and stout financial protection against potential cyber incidents. 

How Does Cyber Insurance Work? 

Cyber insurance functions similarly to many insurance products by establishing a contractual agreement between your business and its insurer. Policies are typically customizable and may be tailored to suit your unique circumstances. After finalizing these details, your company maintains coverage through regular (e.g., monthly) premiums and can file a claim for financial assistance following cyber incidents. 

What Is the Difference Between Cyber Liability and General Liability? 

Cyber liability insurance provides specialized financial protection from the fiscal losses and consequences of cyber incidents, such as data breaches and ransomware attacks. Policies can work in tandem to provide comprehensive coverage alongside other forms of liability coverage, such as general liability insurance, which focuses on rendering aid for expenses arising from the physical losses of third parties (e.g., bodily injuries and property damage). 

What Does Cyber Insurance Cover? 

Payouts from your cyber insurance policy can help pay for many expenses and losses that may result from cyber incidents, including the following: 

• Notifying affected parties, such as customers and clients whose data may have been breached
• Hiring additional contractors, such as IT professionals and digital forensics investigators
• Recouping lost revenue due to normal business operations being hindered or interrupted
• Meeting the demands of ransomware perpetrators
• Paying for noncompliance fines and legal costs arising from an incident 

Why Carry Cyber Liability and Is Cyber Insurance Worth It? 

Cyber liability insurance should be considered an essential investment for any organization that handles, manages, transmits or stores sensitive data. This may include businesses across various industries, such as retailers who work with credit cards, financial institutions that store banking information and health care professionals who maintain medical information. Even companies with robust cybersecurity measures may eventually experience data breaches or other cyber incidents, and lacking adequate coverage could lead to catastrophic out-of-pocket costs. 

Get the Right Coverage 

If you own or operate a business in Hyattsville, Maryland, Washington, D.C., or Newnan, Georgia, contact the team at Waymon Lynch & Associates Inc. to learn more about your cyber coverage options.