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Cyber Liability Insurance

While your standard cyber security measures like firewalls, encryption and incident response plans provide initial protection, a cyber liability insurance policy acts as a vital financial safety net in the event of a catastrophic cyber incident. Cyber liability insurance kicks in when the preventive capabilities of your cybersecurity controls have been overwhelmed. The coverage provides extra protection for things like costs of notifying impacted customers after a data breach, defending against lawsuits over compromised data, paying regulatory fines and penalties, as well as other major losses stemming from the cyber event.

Rather than attempting to account for every possible cyber scenario through preventive measures alone, cyber liability insurance gives you comprehensive, affordable coverage on top of your existing cybersecurity program. BenePac, through The Benefit Companies, Inc., provides essential cyber liability insurance to prevent devastating financial impacts from cyber attacks.

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What is Cyber Liability Insurance?

Cyber liability insurance protects businesses against financial losses from cyber-attacks and data breaches. This type of insurance covers costs by covering the expenses to notify affected parties about a data breach, restore compromised data, retain legal representation, and pay regulatory fines. With the rise of malware, ransomware and hacking incidents targeting companies, cyber liability insurance has become essential for organizations of all sizes.

How Does Cyber Liability Insurance Work?

Cyber liability insurance provides excess coverage over your existing cybersecurity and data breach prevention measures. This type of insurance kicks in when the safeguards and protections you have in place are breached or overwhelmed.

Here's how it works

  • You implement cybersecurity policies, data encryption, firewalls and other preventive controls as your first line of defense against cyber threats.
  • Your preventive measures will have limits in how much they protect against sophisticated hackers, malware and evolving cyber attack methods.
  • If you face a major cyber incident, a cyber liability insurance policy provides coverage for the resulting costs and liabilities.
  • If your security measures are breached, the cyber insurance covers costs like notifying affected parties, restoring systems, legal fees and regulatory fines.

What Does a Cyber Liability Policy Cover?

A cyber liability policy provides coverage against various cyber threats businesses face, including:

Cyber Liability Insurance Policies

Malicious Software Attacks

This covers incidents involving viruses, malware or other malicious code designed to gain unauthorized access, steal data or cause damage to computer systems and networks.

Cyber Extortion and Ransomware Cyber Liability Insurance

Cyber Extortion and Ransomware

This covers situations where cybercriminals lock, disable or compromise a business's operations, systems or data and demand payment (a ransom) to restore access or functionality.

Data Breach Cyber Liability Insurance

Data Breaches

This covers security breaches from unauthorized copying, transmission, viewing, theft or the misuse of sensitive, protected or confidential data belonging to the business or its customers/clients.

Identity Theft Cyber Liability Insurance

Identity Theft and Social Engineering

This covers fraudulent activities involving deception or manipulation, leading to the theft of sensitive information, damage to credit histories or significant financial losses for the business or its employees/customers.

Invoice Manipulation and Payment Redirection Fraud Cyber Liability Insurance

Invoice Manipulation and Payment Redirection Fraud

This covers incidents where cybercriminals deceive a business into making payments to fraudulent accounts by manipulating invoices or payment instructions from legitimate vendors.

Social Media Attacks Cyber Liability Insurance

Social Media Attacks

This covers attacks on a business's reputation or operations through the release of sensitive information, creation of fake social media accounts, sharing doctored images or other harmful activities on social media platforms.

What is Not Covered?

While providing vital protection, cyber liability policies have specific coverage limits and carve-outs, so businesses must carefully review the terms to understand the full scope and limitations before purchasing.

Common exclusions include physical damage to computer hardware, bodily injuries, patent/trade secret violations, failure to meet contractual obligations, government-imposed fines/penalties, acts of war/terrorism, claims arising from prior known circumstances and losses resulting from intentional criminal acts by the insured.

How Much Does Cyber Liability Insurance Cost for a Business?

The cost of cyber liability insurance for a business is based on factors such as the size of the business, the industry it operates in, the level of coverage needed and the specific risks associated with its operations. Various insurance providers offer different pricing structures and coverage options. 

Why Choose BenePac for Cyber Liability Insurance?

With over 4 decades of experience providing employee benefits and insurance services, BenePac has the expertise to custom-tailor a cyber liability insurance policy to meet your business's specific needs. Unlike off-the-shelf solutions, BenePac's consultative approach analyzes risks and operations before designing a package with the right coverages and limits. Whether you run a large corporation or small business, BenePac customizes an affordable solution for extra financial protection and peace of mind.

The Benefit Companies, Inc. provides full-service business administration solutions to companies in Wisconsin and nationwide, including out of Appleton, Brookfield, Eau Claire, Green Bay, Kenosha, Madison, Milwaukee, Oshkosh, Racine, Waukesha and beyond.