What Are Cyber Liability Insurance Policies, and How Do I Know If My Company Needs One?

Fri Sep 29th, 2023 on     Insurance Claims,    

One hundred years ago no one in the insurance business would have heard of a cyber liability policy, but in today’s world, cyber liability policies offer protection most companies need. With technology constantly evolving and more and more information being placed online, cyber-attacks and data breaches are a very real threat. Understanding what a cyber liability insurance policy is and how it can benefit your company is essential for optimum success and protection. 

Unfortunately, as in other areas of insurance, cyber liability insurance companies sometimes act in bad faith and do not honor the terms of these policies. When this happens, or when insurance companies wrongly deny coverage under a commercial general liability (CGL) policy, our firm is there to help. A Miami insurance recovery attorney from Ver Ploeg & Marino can help you understand the rights of your company (and you) and advise you on the best way to proceed.     

Cyber Liability Insurance Policies Explained

Cyber liability insurance policies provide businesses with protection from data breaches and cyber security issues. These attacks and breaches can cost a company significant monetary losses, as well as the cost of having to recover from the breach and loss of data. While all cyber liability insurance policies are not the same, there are some matters that most of these policies cover. Our Miami insurance recovery attorney lists them below.   

  • Cost of Data Recovery: Data recovery can be very expensive. Thankfully, most cyber liability insurance policies cover the costs your business incurs to recover lost or breached data.  
  • Cost to Repair Systems: Cyber attacks often leave computer systems inoperable or at the least, very damaged. A cyber liability insurance policy should provide the coverage needed to make the necessary repairs. 
  • Public Relations Expertise: Your business may suffer reputational harm after a data breach. When this happens, it can be necessary to hire a public relations firm to help repair your company’s image. 
  • Credit Monitoring: When a data breach occurs, the victims are often upset that their personal information has been accessed and they fear what might happen to their credit. Because of this, most cyber liability insurance policies will cover the cost of providing credit monitoring and ID theft repair to those who have been victims of a cyber breach or attack. 
  • Cost to Restore Identities: There can be extensive costs associated with the restoration of identities that have been subjected to a cyber attack. A cyber liability insurance policy can help cover these costs.
  • Demands for Ransom: When the cyber attacker demands a ransom in return for some specific action, such as not releasing the private information of the patients seen in a health care center, cyber liability insurance can help to cover the cost. These ransom demands can be very high.
  • Call Center Set-Up: You may need to set up a call center to address the concerns of those victimized by the data breach and a cyber liability insurance policy may help cover the costs associated with the call center. 
  • Business Interruption Costs: A data breach or other type of cyber attack can easily disrupt your ability to operate business as usual. When you suffer an interruption in business, your cyber liability insurance policy may help cover those losses. 
  • Legal Fees: When data has been breached, you will need legal counsel to advise you regarding your options and the steps you should take next.
  • Notify Customers: Those persons who have had their data breached will likely need to be notified of the breach. Your cyber liability insurance policy can help with the cost of these notifications. 
  • Investigations: A thorough investigation is often needed to identify how the attack happened, who it affected, and the best way to move forward. This type of investigation can be expensive and time-consuming. 

Who May Need Cyber Liability Insurance

Cyber liability insurance is beneficial for many different types of businesses, small and large. If you own a company that conducts business online and utilizes a computer system, you need to consider a cyber liability insurance policy. Also, if your business stores sensitive and private data, such as credit card numbers and Social Security numbers, a cyber liability insurance policy may be needed. Cyber breaches and attacks can occur in businesses with small and large customer bases.  

According to our Miami insurance recovery attorney, certain industries are more prone to cyber-attacks, such as those that are heavily restricted. This can include healthcare businesses, companies that handle a lot of business for the government, and the retail industry.

Types of Cyber Liability Claims

There are two types of cyber liability claims. The first is a first-party claim which results in a direct loss to the policyholder. The second is a third-party claim which recognizes a policyholder’s liability to third parties. A Miami insurance recovery attorney from Ver Ploeg & Marino can assist policyholders with both types of claims. 

What To Do If Your Insurance Carrier Denies Your Cyber Liability Claim

Having a valid claim denied can cost you and your company in many different ways and knowing how to handle such a situation can be confusing. At Ver Ploeg & Marino, we focus our entire practice on representing policyholders who have had their claims denied by their insurance company to recover the compensation they are owed. We represent individual policyholders, bankruptcy trustees, municipalities and government agencies, major corporations, and small and mid-sized businesses operating across all industries. If your insurance carrier denied your claim, speak with a Miami insurance recovery attorney at our firm

Speak With A Miami Insurance Recovery Attorney At Ver Ploeg & Marino

If your business has suffered a cyber liability attack, and your insurance company is denying the coverage that it owes, contact a Miami insurance recovery attorney at Ver Ploeg & Marino. We are attorneys representing policyholders in their fight to recover under the terms of their policies when their insurance company denies a valid claim. We may be reached via our contact page.

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