Computers, smartphones, tablets and other electronic devices have augmented modern workplaces with exciting new capabilities and opportunities to increase efficiency. However, as more operations and functions move into cyberspace, businesses must also reassess risk management and loss control needs. Digital solutions and technological advancements require companies to be mindful of cyber threats and account for potential incidents with adequate insurance.

What Does Cyber Insurance Cover?

Also known as cyber liability insurance, this type of coverage can address potential losses arising from data breaches and other cyber incidents. Details of policies may vary, but policyholders can generally expect to be financially protected from many common cyber incidents, including phishing scams, malware infections, distributed denial-of-service attacks and cyberextortion. In response to such incidents, the financial aid offered by insurance may make all the difference in assisting with the following costs:

• Breach response expenses—This might include costs related to notifying affected parties and hiring digital forensics investigators to uncover the cause of the incident.

• Hiring additional help—If a business requires the services of a crisis management team or public relations firm, cyber insurance may help pay for such assistance.

• Lost revenue—Cyber incidents may force companies to shut down networks or otherwise delay operations, but coverage may help recoup revenue that would’ve been earned.

• Legal aid—Lawsuits may often arise following a cyber incident as affected parties seek compensation. In response, cyber insurance may issue a payout to assist with attorney fees, settlements and judgments.

• Noncompliance fines—If a business fails to implement adequate cybersecurity measures or otherwise prevent a breach from occurring, its coverage may help with resulting penalties issued by regulatory bodies.
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How Much Does Cyber Insurance Cost?

Many factors can influence cyber insurance rates as carriers must carefully analyze risk levels during the quoting process. Specifically, the following criteria may be considered:

• Industry

• Number of clients

• Workforce size

• Data storage details (e.g., type and amount)

• Prior claims history
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Get the Right Coverage

Contact Nobles Insurance Agency today to learn more about cyber coverage for businesses or to compare personalized quotes.