What is Cyber Liability Insurance?

This article has been indexed from The Duo Blog

While the risk of an employee clicking on a foreign prince’s secret gold offer may be past us, modern-day technologies have evolved and expanded in today’s remote work and IoT-connected settings. It’s hard to wrap our heads around every new risk out there; nowadays a single well-intended click of a GoFraudMe link can download malware that locks and holds your data for ransom. Unless every employee is on-boarded with good back-up practices, the fee to get a decryption key is high (and probably in Bitcoin). The advancing ransomware business is a threat not just for the big guys, but for organizations of every size.

According to Verizon’s most recent Data Breach Incident Report, instances of advanced ransomware have doubled in the past year, alongside major upticks in phishing attacks and social engineering. A new landscape of data and cloud-enabled business has forced us to think differently about what to protect — namely the key personally identifiable information (PII) and personal health information (PHI) that can be accessed through corporate and remote networks.

This era of unpredictability has increasingly resulted in companies looking for ways to protect themselves and their employees in the event of a breach. Don’t worry though, there’s already an insurance policy for that.

What is Cyber Liability Insurance?

Cyber liability insurance, sometimes known as cyber insurance, is distinct from traditional commercial general liability and property insurance policies. In short, cyber liability insurance acts as a general line of coverage designed to mitigate losses and costs from a variety of cyber incidents, including data breaches, network damage, and the resulting business interruption.

While each provider’s policy may differ slightly, cyber liability insurance generally deals with:

  • Loss or destruction of data
  • Damages to software/hardware
  • Extortion demands to appease bad actors
  • Breach incident response and crisis management
  • Legal claims for defamation, fraud, and privacy violations (third-pa

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