What Protections Does Cyber Liability Insurance Offer?
As mentioned, cyber liability insurance policies don’t always have uniform coverages. Nonetheless, there are some protections that are becoming more and more common. Some of the coverages that a policy might make available are:
- Network Security Liability Coverage, which might cover online attacks by hackers
- Extortion Liability Coverage, which might cover ransomware attacks
- Privacy Liability Coverage, which might cover data breaches not related to criminal activity
- Media Liability Coverage, which might cover trademark or copyright infringement claims
- Errors and Omissions (E&O) Coverage, which might cover mistakes made in certain work
Should Businesses Purchase Cyber Liability Insurance That Has Errors and Omissions Coverage?
The errors and omissions coverage that’s available through cyber liability policies is usually most useful to businesses that work in cyber-related fields. For example, IT firms, network security consultants and software developers might benefit from this coverage.
Other businesses that need errors and omissions coverage are typically better off purchasing an E&O policy that’s more tailored to their field. They may get some of the other protections mentioned through a cyber liability policy and E&O coverage through a different policy.
What Sorts of Expenses Do Cyber Insurance Policies Cover?
The expenses that cyber policies will cover can vary, but there are many different potential expenses that a policy might cover. Some of them include:
- Revenue that’s lost because a business’ operations are temporarily stopped
- Revenue that’s lost because a business’ reputation is tarnished
- Reparations that must be paid to clients or customers who are affected
- Costs related to purchasing credit monitoring for affected clients or customers
- Costs related to hiring professionals to identify and strengthen security weaknesses
Do Package Policies Come with Cyber Liability Coverage?
Because cyber liability coverage has become so important, many package policies that are available to businesses now include this coverage. Both business owners policies and commercial package policies may offer cyber protection.
For businesses that need other insurance coverages, combining cyber liability coverage with additional protections in a package policy is normally more affordable than buying each coverage separately.
How Can Massachusetts Businesses Get Cyber Insurance?
For help finding cyber insurance that’ll give your Massachusetts business robust protections, contact The Feingold Companies. Our independent insurance agents can show you policies from multiple insurance companies, and they have the expertise required to explain the differences between each policy you see. With their help, you can confidently select a cyber liability policy despite the many variations that exist in this line of insurance.