Can Cyber Insurance Help You Recover From a Data Breach?

Data breaches, cyberattacks and other digital risks have become paramount in business planning. Even among smaller businesses or those in industries that may have previously relied minimally on digital technology, cyber incidents are now a relevant concern. Fortunately, the insurance world has adapted to offer suitable coverage, such as the financial protections and monetary aid potentially available through a cyber insurance policy.

What Is Cyber Insurance?

Also known as cyber liability insurance and data breach insurance, these policies serve a generally common purpose of shielding businesses against the fiscal fallout of an incident. Whether a breach arises due to a phishing scam, malware infection, social engineering or other cybercrime tactics, appropriate coverage can play a pivotal role in helping your company manage the aftermath and recover.

What Can My Policy Help With?

Cyber insurance policies may be tailored to suit your business’s unique needs and circumstances, including its industry, the types of data with which it works, staff size and risk tolerance. Still, while customization is available, your insurance will generally be outfitted with the ability to issue aid for the following:

• Incident investigation costs, such as if you want to hire digital forensics professionals to look into the cause of a breach

• Notification expenses, including those needed to make clients and other parties aware that their information may have been compromised

• Lost income that you would have otherwise earned if not for having to shut down networks or delay operations

• Ransomware payments to satisfy the demands of cyberextortion perpetrators

• Reputational recovery costs, including hiring a public relations firm to help manage the aftermath of a breach

• Legal expenses, such as those incurred if affected parties choose to sue your business

Why Is Coverage Important?

Given the potentially catastrophic consequences of a data breach, having appropriate coverage can make all the difference. Without a suitable policy, your company would have to manage the aforementioned expenses and losses out of pocket, potentially stunting recovery efforts and delaying your ability to get back on track.

Learn More

Contact Global Insurance and Tax Services in West Palm Beach, FL today to further discuss cyber insurance and find the right coverage.

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.