For years, security professionals have been saying “either you have been data breached or you just do not know that you have been data breached.” Data breaches are now a fact of life together with taxes and death, but how can businesses better manage the risks related to a data breach and reduce the significant cost that can result from them?

Cyber Liability Insurance (CLI) has been most successfully used as a risk transfer option in those countries that have mandatory data breach notification laws. For example the United States, where 46 of the 50 states have mandatory requirements for data breach notification. Mandatory data breach notification regulations are in part a driver for Cyber Liability Insurance as the costs of notifying affected users can be extremely high.

As the expense of dealing with a breach gets higher - and the cost of dealing with mandatory notification is added - the option of using CLI will become more attractive for many businesses, in much the same way that existing business insurance policies for fire, flood and theft are a vital itinerary in the risk management toolkit. Presently, cyber liability insurance cover can include;

  • Data breach/privacy crisis management cover. For example, expenses related to the management of an incident, the investigation, the remediation, data subject notification, call management, credit checking for data subjects, legal costs, court attendance and regulatory fines.
  • Multimedia/Media liability cover. Third-party damages covered can include specific defacement of website and intellectual property rights infringement.
  • Extortion liability cover. Typically, losses due to a threat of extortion, professional fees related to dealing with the extortion.
  • Network security liability. Third-party damages as a result of denial of access, costs related to data on third-party suppliers and costs related to the theft of data on third-party systems.
  • Regulatory Fines and Penalties
  • Notification and Monitoring Costs
Please contact Shea Barclay today to learn more about this exciting product offering and how we may further protect your most important assets.