When Do I Need Cyber Liability Insurance? 

Do you need cyber liability insurance coverage?

Technological advancements can have a significant impact on your company’s operations, including the risks and exposures for which you must account.

As new tools and instruments are introduced into the workplace, risk management and loss control measures must be adapted.

The ever-increasing use of digital solutions and cyberspace has made this abundantly clear, as many companies that may have previously not considered themselves at risk for cyberattacks must now bolster defenses.

With these stakes in mind, the team at Home Loan Insurance is standing by with guidance to assist your company in understanding why and when it may need cyber liability insurance. An adequate investment in this coverage may make all the difference in the aftermath of a cyber incident.

What Is Cyber Liability Insurance?

Also known as cyber insurance and cybersecurity insurance, this type of coverage is primarily focused on providing financial protection for potential losses arising from data breaches or other cyber incidents. Like many insurance products, these policies establish legal agreements between your business and its carrier.

In exchange for your premium payments, you may be able to rely on critical financial aid in the face of significant losses and expenses, such as noncompliance fines, lost revenue and legal assistance.

Who Needs Cyber Liability Insurance?

Given the rising use of online data storage, electronic communications, artificial intelligence programs and other technological advancements across most industries, a majority of companies should be prioritizing cyber liability insurance. Exact coverage needs may vary depending on your company’s operations and subsequent risk levels.

For example, for businesses in the following sectors, the need for cyber liability coverage may be particularly dire:

• Financial institutions, which may store banking information and social security numbers
• Health care professionals, who often manage private medical data
• IT and network security businesses entrusted with safeguarding clients’ data and information
• Retailers and e-commerce companies, which may work with credit and debit card numbers

How Much Cyber Liability Insurance Do I Need?

Your company’s exact cyber liability insurance needs can be influenced by a multitude of circumstances. When assessing your situation and ensuring you carry adequate coverage, consider the following factors:

• Industry
• Number of employees
• Type of data you work with (e.g., social security numbers, health records and banking information)
• Amount of data you store or manage
• Existing cybersecurity measures

We’re Here to Help

In the digital era, an overwhelming majority of businesses rely on technology in some way or another. Subsequently, even companies in industries that may have previously felt they were unlikely to be targeted by cyberattacks must now be wary.

Similarly, cybercriminals have also diversified their attack patterns in recent years, finding small- and medium-sized enterprises to often be vulnerable and enticing.

Given the potential ramifications of even a single cyber incident, your business cannot afford to cut corners when it comes to insurance. Contact Home Loan Insurance today to learn more about cyber liability insurance or to get a personalized quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.