Do I Need Cyber Insurance if I Have Standard Business Insurance?

Cyber insurance has become very important in today’s world and that’s why cybersecurity has emerged as a top priority in the modern business world.

As more daily communications and sensitive information are conducted or stored online, companies of all sectors must take cyber threats seriously.

A single gap in your defenses could lead to cyberattacks and data breaches, potentially incurring devastating financial damages. So understanding your insurance is essential.

Who Needs Cyber Insurance?

Also known as cyber liability insurance, these policies can provide financial protection from the effects of cyber incidents, such as phishing scams, malware infections and ransomware attacks. If your company has purchased a business insurance package, you should check if it includes cyber coverage.

Keep in mind that there is no “standard” business insurance since the needs of companies vary widely, and policies should be customized to the specific risks they face.

What Should My Policy Cover?

Your coverage can often be customized to suit your unique circumstances, but cyber insurance can often assist with the following:

• Incident investigation, such as hiring digital forensics professionals and cybersecurity consultants

• Notifying affected parties, such as clients or other parties whose personal data may have been compromised

• Access to public relations and crisis management firms to help mitigate reputational damage

• Paying noncompliance fines, such as those issued by regulatory bodies

• Meeting the demands of cyber extortion perpetrators, such as those using ransomware

• Recouping business interruption losses, such as income you would’ve earned if not for the incident

• Managing legal ramifications, such as hiring attorneys if sued and paying settlements or court-ordered judgments

Cyber Insurance in Sausalito, CA

At Muzio & Rovero Insurance Services, we understand that a standard business insurance package may not be sufficient to address cyber risks and exposures. We’re standing by to help with additional coverage. Contact us today to get a quote.

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.