Even the best cybersecurity system – with state-of-the-art technology, effective and well-implemented policies and procedures, and the most security-aware employees available – cannot guarantee that your business will never be the victim of a cyber-attack.
As with any aspect of business involving unpredictable risk and potentially catastrophic loss, the threat of cyber-attacks requires protection that you cannot provide entirely by yourself. That’s where cyber liability insurance comes in.
However, since cyber liability insurance is so new to the market, a lot of the things we take for granted in regular insurance may not necessarily apply. For example, since cyber liability insurance has only been around for a few years, there is no uniformity in coverage from one policy to the next. Even basic terms like “data breach,” “computer,” and “wrongful act” can vary significantly from policy to policy.
Before you purchase cyber liability insurance, make sure that your policy covers the things you’ll actually need in the event of a cyber-attack: (more…)