Cyber And Privacy Insurance

Cyber and Privacy Insurance

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Cyber and Privacy Insurance – What Is It and Are You Really Protected?

The chance of turning on the news nowadays and hearing about another company having had a breach of security, or having been “hacked”, is becoming more and more common. These instances where unauthorized access by “hackers” to customer and employee personal information are both alarming and damaging to businesses both large and small. You might think your regular business insurance policy would cover the expenses of such a privacy incident or breach, but without a cyber and privacy insurance policy, you could be left picking up the pieces.

What Is It?

So what is cyber and privacy insurance and how can it help protect you? We should first start by giving a more accurate description on what “cyber and privacy” issues exist for businesses. Florida law essentially identifies certain types of personal information that business owners are responsible to safeguard from unauthorized access by others. It isn’t just a concern if you accept debit and credit card payments, but if you have any computer, tablet, laptop, or phone connected to a network that holds or has access to certain customers’ personal information, your company could be at risk. Personal information can include an individual’s first name or initial and last name combined with any of the following: Social Security number, Driver’s License number, ID Card number, user name or email address for online accounts, or financial information such as a credit or debit card number.

Why Do You Need It?

A cyber and privacy insurance policy is designed to help mitigate the potential costs of a privacy incident. Costs associated with determining what happened, why and potential notification expenses are some major coverage components available. A summary of some coverages that might be included in a cyber liability insurance policy are below:

  • Breach Costs- coverage for the costs to confirm the extent of an incident, verify the severity of the incident (forensics) and legal responsibilities for notification (if any) as well as notification expenses (if needed)
  • Privacy Protection- coverage for the costs to defend and handle third party claims arising from handling of personal information, or PII
  • Multimedia Protection- coverage for items such as libel, slander, infringement of intellectual property rights of others which arise out of online content and/or advertising
  • Cyber Business Interruption- coverage of business interruption as a result of a hacker’s impairment of systems
  • Hacker Damage- coverage for direct damage to systems done by hackers
  • Cyber Extortion- coverage for expert assistance in handling situation plus final ransom paid

Cyber/Privacy Insurance can be confusing with so many carriers offering coverages and most of them offering various coverage combinations. This is where your Heacock Insurance agent can help you by discussing your concerns so that appropriate coverage can be found for your business. Give us a call at 863-342-4920 so we can help you.