Savvy business leaders know it’s a good idea to plan for the worst. Despite best-laid plans, things do go wrong, but damage, downtime and losses can be mitigated for businesses that have a plan for when disaster strikes. Many companies are adding cyber liability insurance to their arsenal to protect themselves against costly losses and damages and secure support for recovery and resilience. Others are also adding cyber warranties into the mix. What’s the difference?
Cyber Liability Insurance
Cyber liability insurance protects businesses from the expenses incurred due to a cyber attack and supports them in response and recovery efforts. Depending on the policy, this type of insurance can cover data breaches; attacks on data held by vendors and other third parties; breaches of your own network; cyber attacks that occur inside and outside the U.S.; and terrorist acts. Benefits include:
Indemnification from damages and claim expenses, as well as certain penalties and fines; and
Breach response support with access to experts such as attorneys, security experts, forensic investigators, notification expenses, credit monitoring, call center expenses, and PR expenses.
Cyber Warranty
A cyber warranty is a program or service that guarantees a payout if a customer suffers a cyber security incident or breach. Cyber warranties provide immediate financial relief with no deductible required. Many come with a cyber risk monitoring platform with active alerts and remediation, providing real-time critical insights from your security tools. Benefits include:
Instant coverage through a seamless digital qualification process; and
Instant cost coverage for data recovery services, business interruption loss, incident response services, ransom payment and more.
Which one is right for your business?
Most likely both. While cyber liability insurance offers comprehensive coverage options, including the widest array of cyber risks, it sometimes requires lengthy paperwork and complex approval timelines. Cyber warranties can help fill the gap and provide immediate relief and payouts. Warranties typically cover the deductible for your cyber insurance coverage.
How do you get started?
Navigating the world of cyber liability insurance and cyber warranties can feel daunting to businesses. In the case of cyber liability insurance, companies must submit application data sets for carrier consideration and demonstrate they have put in place certain controls to defend against cyber attacks. If the prospect sounds overwhelming, ATB Technologies can help sort through options and ensure your business is well positioned to secure a liability policy and/or a cyber warranty. What’s more, ATB’s IT experts can help you develop a solid business plan for protecting your people, property and privacy. Find out how we can help by scheduling a free consultation.