Cyber Insurance 101

By:  Mitchell R Ledven , Insurance Advisor, Combs & Company, LLC

The current landscape of the U.S. workforce is quite different than it was six months ago. In a world once consumed by daily human interaction, we now find ourselves spending most of our days sitting in front of a screen and talking behind a keyboard. Some may say that this is just a short-term solution to the problem at hand, while others say it will be the way of life moving forward. While we don’t know for certain which answer is correct, we can agree that one thing is for sure and that is every day you log into a computer, there is a risk that someone is out there trying to take advantage of you. That person could be your next door neighbor or a 12-year-old hacker sitting in their parent’s basement on the other side of the globe.  The point of this blog isn’t to shake you out of your boots, but it is to inform you about a way to protect your business and its assets. Enter Cyber Liability Insurance, a coverage that helps protect data and operations of your business if you find yourself the victim of a cyber related attack. Here’s how it works:

Cyber Liability Insurance helps protect your business from losses resulting from online threats. These breaches can be suffered on a 1 ^st and/or 3 ^rd party basis. This is a responsive coverage to help soften the blow due to a cyber-attack.

What it Protects Against:

• Username and password theft
• Phishing emails
• Ransomware/cyber extorsion
• Defense costs, fines, and penalties
• Business interruption after a cyber related incident
• Breach response
• Funds transfer fraud
• Crisis management/PR
• Website is hacked

In a Nutshell: If you store data or have systems connected to the internet, you are exposed to cyber threats.

Is it required?: No. However, all states have laws regarding breach notification. Some states have laws dictating cyber protocols. For example, NY has DFS rule 500 and the SHIELD Act, while California has the California Consumer Protection Act (CCPA).