Cyber Liability Insurance

Cyber insurance (also known as cyber liability insurance) has become a more and more popular product over the last ten years–especially for small and medium-sized businesses.

The increasing cost, frequency and legal liability associated with data breaches is driving the rise.  (It’s also being driven by companies requiring their third-party contractors to have it.)

Cyber insurance has been on the market in some form for about 20 years, but is still and emerging and developing product.

PricewaterhouseCoopers has estimated global premiums for this type of business protection will hit $7.5 billion by 2020.

There are generally two types of cyber insurance available: Coverage for ‘first-party’ risks handles losses of you business’ data–hr records, presentations, internal memos, email histories, etc. The digital backbone of your business.

Third-party risk coverage handles the liabilities and losses associated with the customer data you store and manage.  If you lose the credit card info of your customers, this is the type of coverage you want to have.

Having good cyber-hygiene practices in place–including the type offered by outsourced managed service providers–can help significantly reduce your premiums.