Cyber Liability Insurance In Wyoming: What You Need to Know to Get Insured
Cyber attacks are more common, costly, and consequential than ever. A sharp increase in ransomware attacks has dominated the cyber landscape recently.
Small businesses are attractive targets for attackers because, for the most part, they lack the security infrastructure large businesses have. Even with reliable security infrastructure, attackers are actively changing their approach to get their hands on the sensitive information businesses handle.
While cyber professionals are scrambling to slow or stop the tide, cyber insurance is an emerging life raft to protect you from the damages your business might suffer in a cybersecurity breach.
What Cybersecurity Insurance Covers
Cyber insurance is essential in helping your company recover after a data breach. The loss, theft, or compromise of your business data can be detrimental, causing loss of revenue or customers.
Insuring against cyber attacks will help you cover financial losses if you ever become a cyber attack victim. The insurance can cover the following:
1. Privacy Liability
The insurance can cover risks associated with sensitive data, such as employees’ financial information, medical records, customer data, or any other personal data.
Exposing sensitive data can violate privacy laws, landing your business in legal problems. Taking privacy liability covers any expenses that will come from the exposure of this data, such as:
- Liabilities required in a contractual obligation
- Cost of recovering identity data
- Costs involved in regulatory investigations
- Funding potential settlement in case of a data breach
2. Network Interruption Cover
The policy will cover your expenses when you experience network failure from cyber extortion demands, malware infection, business email compromise, ransomware attacks, or data breaches.
The policy will cover expenses that link to network compromise, such as:
- Costs your business incurred during downtime
- Lost profits during downtime
- Fixed expenses
3. Errors and Omissions Cover
When a cyber-attack prevents your business from delivering services or contractual obligations, the E&O cover will help you cover claims arising from performance errors.
The insurance will help you address allegations of negligence or contract breach if an attack happens. Other expenses cyber insurance will cover costs associated with:
- Equipment damages
- Data recovery
- Identity recovery
- Legal fees
- Public relation expenses
- Forensic analysis
- Costs associated with legally mandated notifications
While cyber insurance is critical for any organization handling sensitive data, insurance companies have requirements that many small businesses have difficulty meeting.
The Hurdles of Attaining Cyber Insurance
There’s a worrisome trend in cyber attacks that make insurance companies include many hurdles before you can apply for insurance. Attackers are using more sophisticated technology to launch breaches, so insurance companies need to understand the security gap to establish the baseline of their security practice.
The increased cyber attack sophistication makes cyber insurance hard to get, and it’ll likely get more complicated. While cyber insurance is getting more of a must-have for businesses, the proliferation of ransomware has made cyber insurance a less attractive business for insurers.
The main problem is that many businesses’ cybersecurity infrastructures don’t meet the required standards. Even when you meet the standards today, their requirements change as the threat increases.
As a result, navigating the maze of cyber insurance can be a daunting task. Applying for cyber insurance is becoming increasingly complex and technically exhausting for the average business professional. The technology involved with cyber insurance goes far and deep. You need the right IT partner in your corner to help you ensure you get the right coverage and that you’re appropriately protected when a cyber attack or data breach occurs.
K² will Help Your Wyoming Business Qualify for Cyber Insurance
Your business needs a holistic security approach to qualify for cyber insurance. Insurance companies require strong technical protection and excellent protocols to mitigate risk in case anything penetrates.
At K², we can help you prepare and negotiate a cybersecurity policy. Contact us today to help you qualify for cyber insurance.