The Case for Cyber-Liability Insurance

CONTINUED FROM: In Search of Cyber-Safety

 

There is another defense against hackers: cyber-liability insurance. But, like a lot of tech trends, Southwest Florida tends to be behind the curve in adapting it, said Ryan Schmidt, partner with Gulfshore Insurance. “Every single business has exposure,” he says. “There’s always potential for a financial disaster. Those who have (insurance) tend to fare better.”

Policies vary by company, but cyber-liability insurance will typically cover things such as the cost of notifying clients about a breach and possibly paying for credit monitoring, paying to replace any damaged software, or even making efforts to repair the company’s image. This also extends to help pay for lawsuits or fines that may be filed against your company. And many companies will offer consultation services in advance to make sure your cybersecurity measures are up to snuff. 

Retail store policies can get more expensive, but other, smaller businesses can come across relatively affordable coverage that is rather broad. Get $1 million coverage for a little more than $1,000 a year, Schmidt said. Also, keep in mind that cyber-liability may or may not cover things including ransom paid in a ransomware case—that may have to fall under a different policy.

 

RELATED: Know Your Attacks