Cyber Insurance

Cybersecurity should be a top-of-mind priority for organizations of all sizes and across all sectors. Although remote and hybrid work arrangements may provide flexible and attractive employment opportunities, your company may also face increased cyber risks and exposures related to these implementations and other technological advancements in the workplace. Furthermore, cybercriminals have increased the frequency of their attacks and expanded their target selection in recent years. Given these circumstances, even a single lapse or weakness in your cybersecurity measures could have devastating financial consequences. As such, cyber insurance may prove to be an invaluable loss control measure.

What Is Typically Covered Under a Cyber Insurance Policy?

Cyber incidents, such as data breaches and cyberattacks, may be caused by many potential events, including phishing schemes, malware infections and physical theft or misplacement of an electronic device. In response to such incidents, cyber insurance, also known as cyber liability insurance, may provide critical financial assistance and help pay for the following:

Investigating the incident
Notifying affected parties
Hiring additional services (e.g., credit monitoring, public relations and crisis management firms)
Lost or reduced income
Ransomware payments
Noncompliance fines
Legal costs arising from lawsuits

Can Cyber Insurance Cover Losses From Inside Threats or Employee Negligence?

Cyber incidents are often preventable and may even be perpetrated by your own employees. If an employee causes a cyber incident due to negligence, such as leaving electronic devices with sensitive data unattended or falling victim to a phishing or social engineering scam, losses may be covered.

Cyber incidents may also be caused by intentional acts committed by your employees, such as a disgruntled or departing worker stealing data. Cyber insurance may also provide critical financial assistance to limit out-of-pocket losses in these situations. Coverage details may vary, but a qualified insurance agent, such as those at RCU Insurance Services, can help your company assess and address these potential risks and exposures.

Are There Industry-Specific Requirements or Recommendations for Cyber Insurance?

Although there are no legal requirements pertaining to cyber insurance, many industries may be beholden to cybersecurity industry standards. Lacking adequate coverage could leave your organization with significant out-of-pocket losses. Given how technology has become more ingrained in workplaces of all sizes and across all sectors, a cyber insurance policy should be considered a top priority for your business regardless of industry. Particularly robust and versatile coverage may be advisable for organizations that regularly manage, transmit or store sensitive data, such as those in the following sectors:

Health care
Finance
Information technology
Real estate
Retail

Get the Right Coverage

The dedicated staff at RCU Insurance Services has the knowledge and experience to ensure optimal cyber insurance. Our agents work with over a dozen preferred carriers and will search for available options to ensure that your organization has optimal coverage at ideal rates. Contact us today to get started.

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.