What is Cyber Insurance and How Does It Work?

Many businesses rely on technology for everyday business operations. But these systems are also vulnerable to cyberattacks and data breaches, which can result in costly legal fees, fines, lost customers and major headaches. Read on to learn what cyber insurance is and how it works.
We’re here to help you find the protection your company deserves. Contact Paris-Kirwan Associates, Inc. in Rochester, New York, to learn more about our cyber coverage solutions. 

What Is Cyber Insurance?
According to a 2022 Forbes report, 66% of small to medium-sized businesses have experienced a cyberattack in the last twelve months and 83% are not financially prepared to recover from a cyberattack. Cyber insurance, also called cyber risk insurance or cyber liability insurance, can help your business mitigate the damages of a cyberattack. 

How Does Cyber Insurance Work?
Your cyber insurance policy is a legally binding contract between you and your insurance company. In exchange for your premiums, your insurer will pay for covered losses up to your policy limits. Understanding the kinds of losses your insurance company will cover can be difficult. Often, what is and is not covered depends on numerous factors. Contact Paris-Kirwan Associates, Inc. to learn more.

What Does Cyber Insurance Cover?
Although cyber coverage may vary among insurers, your cyber insurance policy may offer coverage for several different types of events. Here are some of the typical benefits your cyber insurance may include:
• Helping to pay for legal fees
• Notifying customers about a data breach
• Recovering compromised data
• Restoring personal identities of affected customers
• Repairing damaged computer systems

Following a data breach, many states require companies to notify customers. Without cyber insurance, this process can be extremely expensive. Ask your insurance agent if there are any other legal requirements your business needs to be aware of following a data breach.

How Do I Get Cyber Insurance?
Let us help you navigate the rapidly changing cyber landscape. Contact Paris-Kirwan Associates, Inc. for more information and to get a cyber insurance quote today. We have offices in Rochester and Jericho, New York. 

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.