What is Cyber Insurance?
The internet gives businesses today access to resources and efficiencies that previously were unimaginable, but it also brings risks that businesses haven’t had to face in the past. Cyber insurance helps protect Massachusetts businesses from many of the newfound risks that come with conducting commerce online.
Within the insurance industry, cyber insurance is still a fairly new coverage. There’s still a significant amount of variance between policies’ coverages, and it’s particularly important to read any policy’s terms, conditions and exclusions carefully. Businesses that need help with this should contact an insurance agent who specializes in cyber coverage, as such an agent will both be able to explain the protections offered by a particular policy and compare them with what’s commonly available through other cyber policies.
What Expenses Do Cyber Liability Policies Cover?
When a business suffers from a covered incident, a cyber liability policy may cover multiple expenses related to the incident. Depending on terms and conditions, the policy may:
- Provide compensation for revenue losses incurred when operations slowed or stopped
- Provide compensation for revenue losses incurred as a result of a tarnished reputation
- Pay reparations to clients, customers and others who suffered losses during the incident
- Pay for credit monitoring of any clients or customers who had personal data compromised
- Cover the cost of identifying and fixing the vulnerability that led to the incident