What You Need to Know About Cyber Insurance
It is impossible to turn on the news today without hearing about cyber security. Data breaches and cyberattacks have become almost a constant threat. As a Miami Insurance Law Firm, we have seen an increase in cyber liability. And it is not just huge corporations that are targeted by cybercriminals. Small businesses are also susceptible to events that can damage reputations and put customers and employees at risk. One of a company’s most valuable assets is its data, and it is important to know that there are specific insurance products available that can not only provide the traditional risk transfer function but can also help your business identify cybersecurity gaps and opportunities for improvement. How is Cyber Liability Covered While many cyber liability claims are submitted under commercial general liability (CGL) policies, such claims can also trigger directors and officers (D&O), errors and omissions (E&O) and other policy types. Typically, insurance companies argue that cyber liability, such as claims arising from data breaches involving sensitive customer information, is excluded from coverage under general liability policies. Some insurers are adding cyber-specific exclusions to traditional insurance products. Some courts have concluded that traditional polices do not cover cyber losses. Today, many insurance companies offer risk-specific cyber insurance policies designed to protect policyholders against data breaches and other cyber-related risks. Roughly 30% of companies currently have some form of cyber insurance. Coverage can protect against first party losses (direct losses to the policyholder) and third-party claims (policyholder liabilities to third parties). First party […]