Two major main-stream news sources published articles this week on the topic of cyber liability insurance. Inc.com published an article on the 6 reasons a company needs cyber liability. The Wall Street Journal released its article claiming that a majority of small businesses that suffer a cyber attack will not survive financially just 6 months later. Cyber liability insurance has been around for 10 years, but it is increasingly gaining momentum by businesses who realize the depth of confidential client information they are storing electronically and the large expenses created by a cyber attack.
As a law firm considers cyber liability insurance, it is important to know that not every policy is written with the same level of coverage. It is important to know what a firm needs and what is available in the market to meet those risks. Here is a list of a few items to consider when looking for cyber and network insurance:
- • Consider whether you need first party coverage and/or third party coverage
- • Some policies a firm already purchases may have limited cyber liability included – what is missing that may need to be purchased separately?
- • When obtaining multiple quotes, how do the exclusions and policy wording differ?
- • What level of risk management assistance does each carrier offer?
- • What limit of liability does the carrier offer for credit monitoring and notification costs?
- • Does the policy provide forensic investigation costs to determine the cause of the breach?
- • Does the policy being considered provide non-physical business interruption coverage?
Contact us today to discuss this insurance more in-depth and determine how your firm can benefit from its coverage.
