Without a cyber policy, virtually every company is vulnerable to a cyberattack, and the consequences may be devastating—one research indicates that the average cost of repairing a data breach is now $7 million. Without an appropriate cyber policy in place, most businesses probably do not have enough insurance to cover the costs of restoring their systems after a data breach.
Cyber insurance can be beneficial in assisting your business recover from a data breach, with expenses that include company disruption, revenue loss, equipment damage, legal fees, public relations costs, forensics analysis and costs associated with legally mandated notifications.
The following are some of the reasons why cyber insurance can help you protect your assets:
Lost Data
Regardless of where your firm’s data is kept, you are responsible for it. You may be held liable if any personally identifiable information (PII) or protected health information (PHI) is leaked, no matter whether it is stored on your premises, in an offsite data warehouse, or in a third-party technology company cloud.
To assist safeguard your business’s data, Travelers cyber specialists advise you to know where all of your sensitive or private information is kept. Create and test data collection and storage policies and procedures, as well as a document retention procedure to ensure you don’t keep data that isn’t relevant.
If a breach happens, Travelers cyber policies can cover notification and remedy expenses, as long as the retention period has not passed. It may also cover defence costs such as responding to and cooperating with regulatory investigators.
Lost Devices
Laptops, tablets, and other mobile devices are frequently taken or tampered with outside the office, potentially exposing personal or confidential data. While you can’t totally prevent theft or loss, you may take steps to safeguard and limit the amount of data on each device by adopting security measures such as requiring complex passwords and mandating periodic updates. Avoid keeping any personal or sensitive information on laptops. If absolutely necessary, store only encrypted data or connect to it via a secure connection to a server.
A Cyber Policy from Travelers can also include Network and Information Security Liability coverage, which protects you if you do not prevent unauthorized access to or use of data containing personally identifiable or confidential information of others as a result of a breach. The costs associated with losing only one laptop might be greater than just the device itself, including attorney fees, investigation and miscellaneous expenses.
Lost Data
No matter where your company’s data is stored, it is yours to manage. Whether you store it on your premises, in an off-site data warehouse or in a third-party technology firm cloud, you may be responsible if any personally identifiable information (PII) or protected health information (PHI) is leaked.
To help safeguard your firm’s data, Travelers cyber specialists recommend that you keep track of where all of your personal or sensitive information is kept. Create and test data collection and storage policies and procedures to guarantee you don’t keep data you don’t need and establish a document retention policy to ensure you avoid keeping data that isn’t relevant.
When a security breach occurs, Travelers’ cyber policies can cover breach notifications and remediation fees, depending on the policy’s retention period. It may also cover defence costs such as investigating and responding to regulatory investigators.
Lost Devices
Laptops and other mobile devices are increasingly being taken from the workplace, which may result in sensitive or private data being exposed. While you can’t prevent everything, you may take measures to secure and limit the amount of data on each device, such as creating procedures for using strong passwords and requiring frequent changes. Laptops should not be used to store any private or sensitive information. You may also use cloud-based file storage to keep only encrypted data or access it via a secure connection to a server.
If a cyber breach occurs, a Travelers cyber policy can provide Network and Information Security Liability coverage, which protects you from responsibility if you are not able to prevent unauthorized access to or use of data that contains private or confidential information of others. The expenses for replacing a single laptop might include more than simply the device itself, such as legal fees,
Notification Requirements
Notifying customers of a breach and other post-breach actions, which is required by law, might cost a business an additional $1.72 million on average, according to one poll of American businesses. Travellers would refer the customer to a law firm to serve as counsel and breach coach, assisting in the reimbursement of those expenses subject to his or her retention. When personal information is stolen, an incident response provider should be chosen in accordance with state laws for customer notifications.
Forensics
Analysts may use a variety of methods to assess the damage and scope of an intrusion. A Travelers cyber policy would payout for computer forensics experts based on the terms defined in the policy. The coverage might also cover potential company revenue as well as added costs that may be incurred while the firm is reopening.
Traveller’s customers have access to risk management services, cyber security experts, and other resources to assist them to avoid data breaches. Cyber insurance can help your company plan for a breach in order to respond effectively during the crucial hours and days after it happens.