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Return To: Cyber Insurance – The Ultimate Guide
Big companies aren’t the only ones in the crosshairs of hackers. Popular cyberattack targets include anyone involved in the healthcare industry, law firms, school districts, telecoms, the banking and financial industry, retail, hotels, restaurants, gas stations, government agencies… you get the picture.
The thing is, hackers aren’t always targeting any one specific company. They look for vulnerabilities, and if you happened to accidentally download malware or open a fake document, your entire company could be compromised, and if that gaffe leads to the exposure of customer data, your entire business could be going down.
So what does cyber liability insurance do?
First, there are two types of coverage: first-party coverage and third-party coverage. First-party coverage covers the computer forensics that will help determine how the data breach happened in the first place. It also helps with the cost of notifying victims (which North Carolina, like most states, requires) and public relations costs to make sure your image isn’t completely trashed. Third-party coverage helps with the lawsuits that are sure to follow.
Cyber liability insurance also helps cover other costs associated with a data breach, such as the retrieval of stolen data, reimbursing victims for any fraudulent charges that may result, and identity theft protection and credit monitoring services, which companies almost always offer to pay after a cyberattack.
Many businesses do not recover after being hacked and suffering a data breach. General liability insurance specifically does not cover internet-related issues, so cyber liability insurance can literally be a life or death decision for your business.