As the Information Superhighway continues to carry more and more critical data, it also carries increased risks of security breaches. With companies as large as Target, Adobe, and J.P. Morgan-Chase being victims, it seems apparent that few are immune to cyber attacks. Fortunately, there is now insurance to protect businesses against hacking, viruses and data theft. Cyber risk insurance can offset damage and loss incurred if your business becomes a victim of an electronic attack.
What a Policy Does
Essentially, a cyber risk policy helps with costs of notifying those affected by the attack, costs of determining the extent of a breach, legal fees, and sometimes, costs of defraying liability costs such as lawsuits by affected customers or business partners.
How to Get the Right Policy
It is important to know your needs, because coverage varies widely. Pay attention to the details, such as limits offered for different sub-categories of coverage, whether there is a time limit deductible for business interruption, how devices (such as computers) are defined, and if the policy covers a retroactive breach (many do). Also, because cyber risk insurance is relatively new, there isn’t a lot of actuarial data for insurers to go by. As a result, the best policies tend to be those tailored to suit your specific needs.
For more information, contact a business insurer familiar with cyber risk insurance. It is fast becoming a necessity in today’s business world.