Why to buy Cyber Insurance Online?

 Everyone increasingly depends on the Internet for their everyday work. Billions of people’s data is stored online. That means there is always a risk of data breach.

Take the case of Uber. Fifty-seven million user accounts and 600,000 driver’s accounts on the popular ride-hailing app were breached back in 2016. News of Uber paying $100,000 to the hackers to delete the data instead of reporting it surfaced later, which made things worse for them. While Uber offers Rideshare Insurance, it’s not clear if they had any cyber liability insurance to cover the damage caused by the massive attack.

The cyber-attack continues to cost Uber to this day. It had to pay $148 million to settle the legal actions filed against them. When lawsuits for failure to prevent data breaches start coming, D&O Insurance can help protect the business and employees. As an insurance agent, you can also pitch D&O insurance to potential clients, especially ones with companies that handle consumer data.

Just like Uber, several other companies are at risk of being attacked. Facebook is a prime example. In 2018, around 50 million users’ personal information was exposed after it was attacked. The attack put a dent in Facebook’s reputation. Smaller businesses can’t afford to deal with such massive hits. Cyber Liability insurance against such attacks is turning out to be as indispensable as commercial insurance or commercial umbrella insurance.

This very need is a significant reason as to why insurance agents should choose to specialize in this niche.

Why? Because at the end of the day, your clients are concerned about the ultimate reason — to protect their business!

Here are some of the most common cyber risks which can be covered by cyber insurance:

Phishing Scams

Phishing is an attempt to gain sensitive information from the victim by email while posing as a genuine or trustworthy contact, such as a bank, an online service, or even someone you work with.

Hacking

Hacking is one of the most common cybercrimes. The perpetrator attempts to gain access to your computers or server in order to steal sensitive information which is later sold to competitors or used to access the financial assets of the victims.

Ransomware

Ransomware is digital extortion by way of malware (malicious software). It encrypts (locks) your computer data and then asks for a ransom to allow you to access it. Most ransomware attacks are pulled off via emails, fake software installations, and malicious ads on popular websites.

Non-payment/Non-delivery

This is perpetrated by scammers who set up fake stores online that look genuine. You make a “purchase” but never receive anything in return.

What Does Commercial Cyber Liability Insurance Cover?

There are two types of coverage within cyber insurance: first-party coverage and third-party coverage. If an online company is attacked, first-party coverage takes care of direct losses from the breach. Third-party coverage helps the company with legal defence and settlement costs.

A cyber insurance policy will pay for:

Notification

In the aftermath of a cyberattack, a company bears the burden of identifying the extent of the damage and notifying everyone who may have been affected. The process requires a formal internal investigation as well. A cyber liability insurance policy will cover the expenses of the notification process.

Data Loss

Cyber insurance will help your business financially cover the data they lose because of cybercrime. Typically, the policy covers data loss, recovery, and recreation. Check with your insurance provider to understand the full extent of your policy.

Civil Damages

Cyberattacks can cost hundreds of thousands of dollars due to lawsuits. A comprehensive cyber insurance policy can help you pay for lawsuits in such situations.

Credit Monitoring

Cyberattacks tend to target financial resources such as credit/debit cards and bank accounts. Cyber liability insurance covers credit monitoring if a business faces security breaches in a client or employee’s PII. This practice is most common in tracking stolen cards and hacked accounts. Credit monitoring will continue for up to a year after the cyberattack.

Conclusion

According to Allinaz, cyberattack claims worth over $650 million were filed between 2015 and 2020. Imagine if the insureds who filed these claims had been uninsured. With the rate of cybercrimes increasing, many businesses have come to see cyber liability insurance as a necessity.

If you want to get an insurance agent for cyber liability insurance, find and agent from the Agency Height Insurance Directory.