Network Security and Privacy Liability Insurance Policies protect your organization in the event of a security breach. This coverage typically provides financial protection
Insurance policies that protect your organization in the event of a security breach. This coverage typically provides financial protection for the following:
First Party Liability
This covers network security liability, privacy liability, and cyber extortion expenses associated with an attack on your network or data.
Third-Party Liability
Further, covers network security liability, privacy liability, and cyber extortion expenses. Also, associated with an attack on another party’s network or data while it’s being transferred to your organization.
What are hardware insurance policies?
Hardware insurance policies provide coverage for hardware failures. This coverage typically includes the following:
Fire, water, or smoke damage Theft Equipment breakdown Software corruption or loss Power surges or spikes Damage from earthquakes, flood, or other natural disasters.
What are Network Security policies?
Network security policies provide coverage for certain cyber liability, privacy liability, or network security expenses associated with a data breach. These policies typically cover the following: Cyber extortion expenses Network security failures Privacy failures.
What are identity theft policies?
Identity theft policies provide coverage for certain expenses associated with identity theft damages or losses. In addition to the standard coverage, and identity theft policy may also cover the following: Identity restoration services Loss of wages Loss of personal property Loss of credit loss.
What are E-Discovery/Disaster Recovery policies?
E-discovery/disaster recovery policies provide coverage for certain expenses associated with e-discovery and disaster recovery. This coverage typically includes the following: Costs to retrieve data from a damaged system Legal fees associated with defending against a data breach case Cost of hiring IT personnel to retrieve lost data.
Why do we need these policies?
It’s important to have coverage in place to protect your organization should a cyber attack or data breach occur. Without this protection, you could be liable for damages that could potentially cripple your business.
What does the future of liability insurance look like?
Liability insurance for cybersecurity is poised for growth. As more and more businesses are taking measures to protect their data from cybercriminals. In fact, according to Allstate Insurance Company’s 2017 State of Cybersecurity Report, 73% of surveyed organizations had suffered a cybersecurity event in the past year – a number that’s up from 48% in 2016. So it’s no surprise that network security insurance policies are growing in popularity. As more businesses take measures to protect their data and information systems, the need for these policies will only increase.
Who can provide this type of insurance?
There are several insurance companies that provide network security liability coverage. Some well-known companies include:
AIG — This company offers both first and third party liability insurance as well as cyber extortion coverage. According to AIG’s pricing guide, a small to medium business can expect to pay between $1,500 and $5,000 per year for a policy with $5 million in coverage.
Chubb — Chubb offers first and third party liability insurance as well as cyber extortion coverage. According to Chubb’s pricing guide, small to medium size businesses can expect to pay between $1,200 and $10,000 per year for a policy with $5 million in coverage.
Foremost — Foremost offers first and third party liability insurance as well as cyber extortion coverage. According to Foremost’s pricing guide, a small business can expect to pay between $600 and $7,000 per year for a policy with $2 million in coverage.
Conclusion
Businesses are increasingly coming under fire for non-compliance with data protection laws and regulations, and this trend is only set to continue. To protect your business against these risks, consider purchasing network security liability insurance. The cost of a policy is much lower than the potential fines associated with a data breach. Contact an insurance specialist today to get started.