CYBER LIABILITY INSURANCE
Cyber and privacy policies cover a business’ liability for a data breach in which customers’ information (such as social security numbers, credit card information or medical records) are stolen through an electronic network. Cyber liability policies pay expenses associated with a data breach including: notification costs, credit monitoring, defense of claims by state regulators, fines and penalties, and loss resulting from identity theft.
Here’s what you need to know about cyber and privacy insurance…
The average cost that a data breach costs an organization jumped from $5.9 million in 2014 to $6.5 million in 2015. The average cost per compromised record in 2015 was $218, of which $74 relates to direct costs associated with forensics, notification, credit monitoring and public relations. (Ponemon Institute, 2015 Cost of Data Breach Study: Global Analysis)
Cyber liability can cover the costs associated with lawsuits alleging trademark or copyright infringement, invasion of privacy, defamation or product disparagement, as well as regulatory proceedings seeking fines or penalties as a result of actual or potential unauthorized access to private information.
As technology advances and evolves, so do cyber liability policies. More and more insurance carriers are entering the marketplace.