Cyber Liability Insurance
Cyber Liability Insurance protects companies against 3rd party claims of proprietary loss resulting from a variety of electronic activities. Usually these electronic activities involve collecting some form of sensitive, personal, or confidential information.
Basically, if you hold sensitive data of any kind on a computer or electronically, there is risk that this information could be exposed or stolen by a hacker. If a network breach happens, Cyber Liability Insurance is meant to cover the costs associated with the breach, including costs to defend claims, fines, penalties, the loss resulting from identity theft, notification costs, and credit monitoring. It will also cover the cost for the loss of income during the time that your company needs to be shut down during the cyber security issue.
Because you could have the sensitive information for many people, a network breach could leave the personal information vulnerable for a large group of people. This could result in a class action lawsuit, which is much more expensive than a typical lawsuit.
The data trends are clear, cyber attacks are becoming more and more common and the costs associated with them continue to rise.