February 21, 2024

What is Cyber Insurance?

Cyber Insurance helps secure your business from online threats. It gives business owners peace of mind and security against cyber-attacks, such as hacking, data theft, or ransomware.

Any businesses that have websites or computerized records are prone to accidental data breaches and cybercrime where the consequences can be exorbitant.

You could be up for the cost of ransoms or IT solutions to access and fix your systems depending on the situation, or you may be liable for the costs of disclosing the breach, legal claims, and rectifying any losses suffered by your clients or customers.

Keep in mind that a cyber attack or data breach may not only cost your business more than just money. It could also jeopardize your intellectual property, endanger your customers’ personal information and cause major disruption to your company’s reputation.

Following a cyber security breach, cyber insurance can help protect your business, your customers, and other parties from financial losses.

Your insurance company & broker will represent you and fight for you and your business!

Costs associated with may include:

  • Loss of revenue due to interrupted business
  • Hiring negotiators and paying the ransom
  • Recovering or replacing your records or data
  • Liability and loss of third party data
  • Defence of legal claims
  • The investigation by a government regulator
  • Copyright infringement
  • Misuse of intellectual property online
  • Crisis management and monitoring
  • Avoidance of further attacks

There are exclusions. Most of the time, there is a deductible or excess and limits on cover, so check with your trusted ARMA insurance broker.