The Evolution of Cyber Protection
More than two decades ago, cyber protection started out as errors and omissions insurance (E&O). As the internet changed, E&O policies grew to include damage caused by viruses, unauthorized access of client information, and so on. More often than not, it was tech-based companies purchasing these policies. As network security expanded into privacy space, other industries began looking for standalone cyber policies that provided protection for network security as well as privacy liability.
Modern Cybersecurity Policies
Today’s cyber protection policies encompass a wide range of services. These include:
- Errors and Omissions: These claims occur due to errors from services. These can be tech-based services, such as software, or professional services, such as legal or medical aid.
- Media liability: These claims are the result of advertising based injuries such as infringement of intellectual property, copyrights, or trademarks. They can also include libel and slander.
- Network Security: These claims relate to network security failures. Such failures can cause exposure or destruction of customer data, virus transmission, and more.
- Privacy: While many think of privacy claims as a breach of sensitive online data, it can include physical data as well. Some examples would be a lost laptop or files accidentally thrown away.
Cybersecurity Insurance Limits
It is not enough to have cybersecurity insurance. Business owners need to understand what their policy covers as well as its limitations. For example, some policies only provide business interruption coverage if an attack affects your network for a set number of hours. Other items most policies do not cover include:
- The expense required to improve existing systems.
- Harm to reputation.
- Loss of future income. For example, sales may be down after an attack because consumers lost trust in a vendor after a cyber security breach.
With technology constantly changing, businesses cannot afford to leave their cyber data unprotected. To learn more about cyber protection policies, contact us.