How to Choose the Right Cyber Liability Insurance

Symantec, a leading American Internet security firm, projects that cyberattacks will continue to grow each year. They also find that web administrators have a hard time remaining current when it comes to securing business websites.

In fact, Symantec found three-quarters of websites had vulnerabilities. Each day, the chances of your business experiencing a cyberattack is greater than the day before.

Do you have the right cyber liability insurance to protect your business if something happens? If not, keep reading to determine the best way to choose a cyber liability policy.

Choose a Policy with Large Limits

In 2013, Target experienced a data breach. Over two years, Target’s expenses resulting from the data breach totaled $252 million. Unfortunately, Target didn’t purchase enough cyber liability insurance.

Therefore, the company was responsible for paying $162 million, beyond what their business insurance policy covered.

When you purchase insurance, you should buy enough insurance to cover all your potential losses. The best way to determine the financial impact of a data breach is by speaking with a licensed insurance agent or a financial advisor.

Once you know the amount of insurance you need, you can then purchase a policy that works for your company. However, purchasing cyber liability insurance isn’t something you forget about from year to year. You should reexamine your policy annually to ensure you still have enough coverage. 

Know What’s Covered by Your Policy

There are few regulations when it comes to cyber liability insurance. Insurance companies are free to determine what they will and will not cover. As such, it’s imperative that you do your due diligence when you are shopping for policies.

Reading the fine print will help you understand the coverage you have so that you can determine the best policy to purchase. The following are some coverage options found in cyber liability insurance policies.

• Forensic investigation
• Legal representation
• Notifications sent to victims
• Public relations
• Credit monitoring

By working with a risk management professional, you can identify potential risks, and then compare it to any cyber liability insurance you are reviewing. Try to choose the cyber liability policy that provides you with the most coverage.

Data breaches, ransomware, and stolen customer identities all represent the new normal these days.  Businesses that don’t have the security of a cyber liability insurance policy to assist them in the event of an attack must foot the bill alone. Fortunately, you can protect your business by purchasing data breach insurance today.