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Top 10 Essentials of a Cyber Insurance Policy

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Top 10 Essentials of a Cyber Insurance Policy

Published Friday, June 1, 2018

 

 1
Forensics & Legal Expenses
Hiring experts to determine the scope of the breach and the insured’s associated legal responsibilities can often exhaust policy limits.  Ensure that you have proper coverage and limits
 2
Public Relations Costs
This coverage is for retaining a team of experts to repair any damage to a business’ reputation.
 3
Notification Costs and Credit Monitoring
Now a law in most states, businesses are responsible for notifying anyone that may have been affected by a breach.  This coverage may also pick up the costs of providing free-credit monitoring for those affected, typically for 12 months.
 4
Privacy Liability
Covers the insured in the event of a lawsuit arising out of exposed customer or employee private information.
 5
Cyber Extortion
Hackers have been known to hold businesses hostage by demanding funds before returning control of the network.  Extortion coverage will cover the costs of any “ransom” payment that a third party demands.
 6
Business Interruption
A cyber attack can quickly bring down a business network and keep it offline leading to downtime and unhappy customers.  This coverage will reimburse the insured for lost business income during this network outage.
 7
Data Loss and Restoration
This covers the cost of restoring any lost data.  Some policies may cover any diagnosis and repair to the original cause.
 8
Fraudulent Funds Transfer
Cyber criminals target small business bank accounts by stealing on-line banking credentials and transferring money to offshore accounts.  Since the small business itself was breached, the bank may not reimburse the stolen funds.  This coverage will protect the insured from such fraudulent funds transfers.
 9
Social Engineering
Fraudsters use information posted on social media to obtain information used to impersonate customers, vendors, or employees with the goal of tricking a small business into releasing funds or sensitive banking information.  Social Engineering Fraud coverage will reimburse the insured for funds lost through such deceptions.
10
Data Breach Risk Management Tools
The best insurance policies come with an array of services designed to help the insured reduce the risk of becoming a cyber victim and designed to respond in the event that the insured does.  Most small business aren’t cyber experts so having a breach team ready to help in the wake of an incident is critical.

 

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