Companies of every size are vulnerable to cyberattacks. Your information, privacy, and operations are all at risk, and cybersecurity insurance can protect your business from these risks through privacy liability coverage, network security coverage, errors and omissions coverage, media liability coverage, and network business interruption coverage.
1. Privacy Liability Coverage
For companies with privacy risks or information risks, privacy liability coverage is essential. Employee and customer information is highly sensitive, and data breaches that expose this data threaten the security of your customers and employees and leave your company vulnerable to liability.
In the event of a privacy law violation or a cyber incident, your company will be protected from liabilities under privacy liability coverage. You may incur these third-party costs if you face liabilities from a contractual obligation or liabilities from regulatory investigations.
Some examples include protecting your company against consumer class action litigation, along with funding a settlement after a data breach or cyber incident. In a regulatory investigation performed by law enforcement or government, privacy liability coverage may also cover legal expenses, penalties, and fines.
Include privacy liability coverage in your cybersecurity insurance policy to protect the information and privacy of your business.
2. Network Security Coverage
If you want to protect your company’s privacy and information, you should have network security coverage. If your network security fails, this type of cyber insurance will cover your company.
Network security failures include:
- Business email compromises
- Cyber extortion demands
- Data breaches
- Malware infections
Your first-party costs will be covered by network security coverage. For network coverage, first-party costs include:
- Breach notification to customers
- Credit monitoring
- Data restoration
- Establishing a call center
- Expertise in public relations
- Identity restoration
- IT forensics
- Legal expenses
- Payment and negotiation costs from a ransomware demand
Include network security coverage in your cybersecurity insurance policy to protect your company in the event of a network security failure.
3. Errors and Omissions Coverage
Errors and omissions (E&O) coverage protects you from cyber events that keep you from delivering your services to customers and fulfilling contractual obligations. Claims about errors or performance failures in your services are covered by E&O coverage, such as software or consulting services, or traditional professional services rendered by engineers, doctors or lawyers.
This coverage also protects against breaches of contract or allegations of negligence, including legal defense costs from a lawsuit or a dispute with a customer.
Include E&O coverage in your cybersecurity insurance policy to protect your company against losses due to errors and omissions in your services.
4. Media Liability Coverage
Media liability coverage protects you from intellectual property infringement, except for patent infringement. This coverage typically applies to both printed advertising and online advertising, including your company’s social media posts.
Include media liability coverage in your cybersecurity insurance policy to protect the intellectual property of your company.
5. Network Business Interruption Coverage
If your business is dependent on technology to stay in operation, you’ll want to include network business interruption coverage in your cybersecurity insurance policy to protect your business from operational cyber risk.
When your network or your provider’s network goes down, you can use this coverage to cover fixed expenses, lost profits, and extra costs during the time that your company was impacted while the network was down. Coverage also applies to security failures from events like cyberattacks, and system failures like human errors or failed software patches.
Include network business interruption coverage in your cybersecurity insurance policy if the successful operation of your business depends on technology.