There are many potential consequences of a cyber incident. These situations may affect not only your own business and employees, but also clients, vendors and other third parties. Fortunately, cyber liability insurance can generally provide financial assistance for many costs and losses, including the following:
Incident response expenses—This coverage can help pay for costs related to notifying parties whose data has been compromised and conducting an investigation of the incident itself.
Services for affected parties—If the information of third parties has been compromised, your insurance can help pay to provide them with credit and fraud monitoring services.
Enlisting additional help—Recovering from a cyber incident may require your organization to hire outside services, such as IT contractors, crisis management teams and public relations firms.
Business interruption costs—Your insurance may help your business recoup lost or reduced income if a cyber incident disrupts your normal operations.
Cyberextortion—If a cyber criminal uses ransomware or other means of extorting your business, this coverage can compensate you for meeting their demands.
Fines and legal costs—This coverage can help pay noncompliance fines or expenses arising from lawsuits, such as representation, settlements and judgments.