As cyber criminals continue to become more active, expand their target selection and enhance their attack methods, organizations of all sizes and sectors must take cyber threats seriously. Furthermore, the growing involvement of technological solutions amid daily operations has made many workplaces more susceptible to cyber incidents. With that in mind, a cyber liability insurance policy may be an invaluable investment. 

What Is Cyber Liability Insurance Coverage? 

Cyber liability insurance is an integral component of an adequate insurance portfolio for any organization that stores, transmits or otherwise works with private or sensitive data. This coverage provides policyholders significant financial protection across many common cyber risks and exposures. In the aftermath of a cyber incident, a cyber liability insurance policy may be critical in limiting out-of-pocket costs.  

How Does Cyber Liability Insurance Work? 

Cyber liability insurance policies can be purchased from many insurers, including the agents at The Meyer Group. As long as a policy remains active, organizations may be able to access financial assistance for expenses related to a cyber incident. Like most types of insurance, policyholders can maintain their coverage by paying regular premiums. 

What Can Cyber Liability Insurance Protect Policyholders From? 

There are many methods cyber criminals use to attempt to breach an organization’s cyber security defense. Fortunately, cyber liability insurance can respond to many common cyberattack methods and help policyholders cover the following expenses: 

• Business interruption costs—If an organization’s regular operations are hindered, halted or otherwise altered by a cyber incident, this coverage can compensate policyholders for lost or reduced income.

• Incident response—Cyber liability insurance can help pay for investigating an incident and notifying parties affected, such as customers or clients whose data may have been compromised.

• Providing services—This coverage can help a policyholder provide affected parties with fraud or credit monitoring services.

• Hiring help—Cyber liability insurance can help organizations acquire additional assistance to manage the aftermath of a cyber incident, such as enlisting aid from IT contractors or public relations firms.

• Cyber extortion payments—If a policyholder is targeted by ransomware, which can hold an organization’s data hostage unless a payment is made, cyber liability insurance can recoup the cost of meeting the perpetrator’s demands.

• Legal costs—This coverage can help policyholders pay noncompliance fines arising from a cyber incident and may provide financial assistance for legal defense, settlements and judgments.

How Much Cyber Liability Insurance Do I Need? 

Many organizations may have unique circumstances that influence their overall cyber risks and exposures, affecting their cyber liability insurance needs. When assessing its coverage needs, an organization should work with a qualified insurance agent and consider the following factors: 

• Industry

• Current cyber security controls

• Amount of data being stored

• Type of data being stored (e.g., health records, banking information, social security numbers)

Get the Right Coverage 

For over 35 years, The Meyer Group has proudly served businesses in St. Louis and the surrounding area. Our dedicated agents have the knowledge and experience to assess your cyber liability insurance needs and address them with optimal coverage. Contact us today to get started.