Cyber Liability helps protect your firm from expenses and liability resulting from the release of customer or employee personally identifiable information (PII).
As there are dozens of carriers currently offering this coverage, seeking out coverage can be very challenging. Currently, there's no consistency between carriers in relation to policy forms, terms and coverage. Let us work with the carriers on your behalf and help you with the selection process.
Cyber Liability policies may include the following elements:
Prevention, Education & Planning
Offers recommendations and education on how to reduce the chances of a data breach and protocols on how to react should a breach occur.
24/7 Breach Response Services
Provides support after a cyber breach. May include specialized service providers, such as a Breach Coach, that will walk you through the needed steps to mitigate damage after a breach.
Connects you with experts that can help determine the cause and extent of the breach.
Crisis Management & Public Relations
Covers marketing expenses needed to repair your firm's reputation after a breach.
Informs past and present customers, prospects and employees of the breach.
Covers expense of providing this service to those whose information may have been compromised.
Restores income lost as the result of your computer systems being down from a cyber breach.
Offers you the opportunity to work with data recovery specialists to determine if data can be recovered after a computer attack and, if it can, pays the cost to recover and restore it.
Protects from suits or claims made against your company by customers or employees as a result of personal information exposed or stolen during a breach. Also, provides coverage for instances in which hackers use your system to inflict damage on others. This provision often covers the expense of Legal Defense, Settlements, Damages & Judgments and Regulatory Fines & Penalties.
Example Scenarios That May Be Covered
- Cyber Extortion is when a hacker threatens retribution unless their demands are met. The most common is a ransomware attack in which malicious software blocks access to your data and your backup data until you pay the software creator a sum of money.
- Social Engineering/Cyber Deception scams result from the use of deception to manipulate individuals into divulging confidential information or transferring, paying or sending money. Note: some carriers may offer this as an optional coverage under the Fidelity Bond.
Important - Report Breach Early To Carrier:
As soon as you suspect a cyber breach, report it to your carrier. Your carrier most likely has established service providers with whom they have pre-negotiated rates that will determine if there's been a breach, plug the leak, ascertain the damage and notify customers. If you hire your own consultants, you could be in violation of your policy and might have difficulty being reimbursed for expenses.