Cyber Liability Insurance: Data Breaches

Many modern workplaces rely on digital technology and online operations. But while technological advancement has helped companies across many industries innovate and streamline functions, such significant changes require careful consideration of changing risks and exposures. Cyber incidents, such as data breaches, can be just as damaging as a fire or other incident impacting tangible assets, making sufficient insurance essential.

How Does Cyber Liability Insurance Work?

Cyber liability insurance can help with the financial ramifications of data breaches, which may be caused by a multitude of incidents, including phishing messages, malware infections and physical theft of company devices. In the aftermath of such incidents, you can file a claim against your policy, potentially curbing the out-of-pocket costs of a breach and helping your business get back on its feet.

What Can My Policy Cover?

After a data breach, you may need to handle various unbudgeted expenses and substantial financial losses. While cyber liability insurance can vary in its exact coverage specifications, you might often receive payouts to help with the following:

• Incident investigation costs—After a data breach, you may want to hire digital forensics investigators to help determine how it occurred. Your policy can help with these costs.
• Breach notification expenses—If your customers’ and clients’ sensitive information is compromised, you’ll need to let them know. Your insurance can help cover these expenses.
• Business interruption losses—A data breach can cause significant delays as you may need to shut down systems and networks, but your coverage can compensate you for lost income you would have otherwise earned.
• Managing public relations—Your company’s good name may be sullied after a data breach. Fortunately, your insurance can help pay to hire a public relations firm.
• Legal costs—Class action lawsuits may arise after a data breach, as affected parties seek compensation. Cyber liability insurance may help with related costs, including hiring attorneys and paying settlements and judgments.

We’re Here to Help

If you need to cover yourself against data breaches, the team at Insurance Center of New Orleans stands ready to help you find appropriate cyber liability insurance. Contact us today.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.