Are you prepared to survive a cyber security breach?
A Data breach could create loss of revenue and a dramatic increase in expenses. Your organization may be accountable for providing identity protections, public relations expenses, legal fees, fines, legal liabilities, and other expenditures in response to a breach. A breach will impact your public, customer, partner, investor, and third-party confidence in your organization. Cyber security insurance can assist your organization to quickly, and effectively respond to post-breach incident expenses to protect your business continuity, reputation, and revenue. Organizations that maintain an effective and improving cyber security posture are the businesses who will have the best chances to effectively survive a breach. Processes such as risk-based assessments, disaster recovery, user training, compliance auditing, incident response, in conjunction with an appropriate cyber security insurance option provides the best protections for your organization.
Impervious offers several cyber security insurance options and security services to afford your organization the best chance to protect your business, survive, and effectively respond to a breach.
Why Organizations Must Protect Themselves from of a Cyber Attack Liabilities.
A cyber security breaches are inevitable; a business must respond quickly to help protect impacted individuals, business’s reputation, business systems, and sensitive data. In the event of a data breach your company may be liable for the following:
First & Third-Party Risks
First-Party Risks refers to the policyholder’s losses and third-party risks refers to the costs and losses associated with any legal assertions by customers or other third parties. In the event of a breach, your organization can expect litigation from third parties. These actions can arise from breaches in network/data security or Denial of Service Attacks, transmission of malware to third-party systems, publication of content resulting in defamation, or invasion of privacy or infringement of intellectual property rights. Moreover, they can also arise from failure to properly handle, manage, store, or protect personally identifiable or confidential information.
Regulatory, HIPAA, and PCI Defense, Fines and Penalties
Expect claims against your company to be made by governmental entities (including local, state, federal or foreign-based agencies) alleging a violation of a privacy law resulting from a failure to protect confidential information or breach of contract claims made by a party to a Merchant Service Agreement/Credit Card Processing Agreement for failure to protect confidential information in accordance with payment card security standards.
The impacts of leaving your company unprotected can also result in the following organizational expenses and negative organizational impacts.
- Data Breach Response Expenses
Expenses incurred by 3rd parts to address incident response, public relations, and legal expert witnesses, credit monitoring services, customer breach notification in response to a cyber security incident or breach of data.
- Reputation Income Loss
Revenue loss of revenues due to negative publicity concerning failure to protect confidential data.
- Business and System Failure Interruption
Revenue losses and additional expenses due to disruption in business continuity resulting directly from unauthorized access or misuse of a computer system, transmission of malicious code or virus, or a Denial of Service Attack or unexpected outage.
- Cyber Crime, Social Engineering, and Ransomware Extortion
Expenses for an extortion incident or loss of funds transferred as a direct result of fraudulent instruction, fraudulent input, deletion or change of data by an unauthorized third party.
So, What Can Cyber Insurance Cover?
While coverage will vary based on company offerings, policy, and the level of protection an organization selects, cyber insurance typically covers first and third-party risks. ‘First-party risks’ refers to the policyholder’s losses while ‘third-party risks’ refers to the costs and losses associated with any legal claims brought upon you by your customers or other third parties.
- Data Breach Response:
Coverage includes expenses the insured incurs for hiring 3rd party incident response teams, public relations experts, legal advisors, customer notification, and credit monitoring services cost in connection with the cyber security incident or data breach.
- Reputation Income Loss:
Coverage includes loss of profits due to adverse publicity resulting in loss of reputation regarding failure to protect confidential information.
- Business & System Failure Interruption:
Coverage includes loss of revenues and additional expenses due to disruption in business operations resulting directly from unauthorized access or misuse of a computer system, transmission of malicious codes or viruses, a (DoS) denial of service attack, or unplanned/unexpected outages.
- Cyber Crime, Social Engineering, & Ransomware Extortion:
Coverage for an extortion incident or loss of funds transferred as a direct result of fraudulent instruction/input, deletion, or change of data in a computer system by any unauthorized third party.
- Network Security, Data Security, Media Content, & Privacy Liability:
Coverage includes third party claims arising from a breach in network or data security, denial of service (DoS) attacks, transmission of malware to third-party systems, publication of content resulting in defamation, invasion of privacy, infringement of intellectual property rights, and failure to properly handle, manage, store, or protect personally identifiable information (PII).
- Regulatory, HIPAA, PCI Defense, Fines & Penalties:
Coverage for third-party claims made by governmental entities includes local, state, federal, or foreign agencies alleging a violation of a privacy law resulting from a failure to protect confidential information or breach of contract claims. These claims are made by a party to a Merchant Service Agreement/Credit Card Processing Agreement for failure to protect confidential information in accordance with payment card security standards.
Contact one of our cyber analysts today and learn how you can supplement your organizations ability to survive a breach with cyber insurance.