Although technology opens doors for new opportunities, it also creates the threat of cyber risks. This technology-dependent economy presents a new challenge for businesses when it comes to protecting sensitive data. BKS Partners understands the importance of educating our clients on their options to protect their business and themselves from data breaches.
Depending on the policy, cyber liability spans a broad spectrum of coverage. Privacy liability network security can protect against negligence or failure to safeguard confidential data, including acts of rogue employees or vendors. Network security covers loss from a Denial of Service (DOS) attack or Unauthorized Access to Records.
Data Breach Stats
The primary purpose of a network security & privacy liability policy is to provide liability coverage for third party claims caused by a privacy breach. First party coverage can provide reimbursement for certain expenses incurred prior to, or regardless of, the filing of a subsequent claim—making it a form of balance sheet protection. First party coverage can be insured under these policies:
A company is potentially exposed to a data breach simply by collecting, storing, and/or transmitting data. In the event of a data breach, the organization faces the threat of costly litigation, substantial response and remediation costs, regulatory fines and penalties, and devastating reputational harm that can result in a loss of clients. First party expense reimbursement may be available for:
This type of coverage can be equated to kidnap and ransom insurance for computer systems. A common tactic in cyber-extortion scenarios is to threaten to incapacitate the victim’s transactional website or other components of their information system, known as a DOS attack. This coverage provides money to the insured to meet the demands of the extortionist, but also provide resources to help navigate and negotiate the situation.
An e-business interruption policy helps reimburse profit loss in the event of a business’ inoperability resulting from interruption or suspension of the company’s computer system due to a security breach. Other operating expenses that can be reimbursed are payroll and forensic expenses.
This coverage reimburses the costs incurred to restore electronic data that has been lost due to the unauthorized access of their system, the introduction of malicious code or virus, or a DOS attack that causes loss or damage to data. Although most companies have data backups stored in a secure location, extra expense can still be significant.
This type of coverage can be equated to kidnap and ransom insurance for computer systems. A common tactic in cyber-extortion scenarios is to threaten to incapacitate the victim’s transactional website or other components of their information system, known as a DOS attack. This coverage provides money to the insured to meet the demands of the extortionist, but also provide resources to help navigate and negotiate the situation.
An e-business interruption policy helps reimburse profit loss in the event of a business’ inoperability resulting from interruption or suspension of the company’s computer system due to a security breach. Other operating expenses that can be reimbursed are payroll and forensic expenses.
This coverage reimburses the costs incurred to restore electronic data that has been lost due to the unauthorized access of their system, the introduction of malicious code or virus, or a DOS attack that causes loss or damage to data. Although most companies have data backups stored in a secure location, extra expense can still be significant.
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