Every employer faces the reality that they may be the target of a network security or privacy breach; there have been numerous instances of large companies suffering cybersecurity breaches within the last few years. While your small business clients may not think they have exposure to a cybersecurity or privacy breach, even a few hundred compromised records can jeopardize credibility and cost a small business thousands in damages.
A cybersecurity or privacy breach can jeopardize credibility and cost small businesses thousands of dollars (or more) in damages. A data breach can impact an organization in many ways including: decline in customer service, lost client and proprietary data, business interruption, loss of reputation, etc.
AmTrustCyber
AmTrust offers a single policy solution that is specifically tailored to protect small businesses against cyber security and privacy breaches. Here are five things to know about AmTrustCyber Insurance coverage.
1. The AmTrust Advantage
AmTrustCyber offers low rates and specialized coverage. With no application required for a quote for limits of $100,000 or below, you have the opportunity to grow your business by quoting and selling cyber liability insurance to all your commercial customers.
2. The Policy Starts Working Right Away for Your Client
The extent of cyber liability coverage your client may need will differ from business to business. At a minimum, cyber liability insurance works for your client immediately in the event of a data breach. First party response services include assistance at every stage of the investigation of, and response to, a breach incident from a team of technical professionals. In the event of a breach or suspected breach, the policy provides computer forensic services to help identify the cause of the breach.
AmTrustCyber Insurance includes legal services to help companies comply with state regulations that require a business to notify customers of a data breach involving personally identifiable information. Our product includes call center services for affected customers as well as public relations and crisis management expenses to help protect the business reputation of your client. Policies generally cover indemnification for legal fees and expenses, provide customer notifications in the event of a breach and include the option to monitor the information of anyone impacted for a specified period of time. Policies may also cover costs incurred in the recovery of compromised data or the repair of damaged computer systems.
3. Business Interruption
One of the biggest exposures your client faces in the event of a breach is business interruption loss. Your client’s bottom line is at risk if they are unable to conduct their business because of an interruption or suspension of their computer systems. AmTrust’s Cyber Liability product is designed to pay the client for loss if the interruption or suspension is caused by the failure of the client’s computer security to prevent the breach.
4. Website Media Content
AmTrust's Cyber Liability policy also includes coverage for Website Media Content Liability. For example, as your client’s small business expands into the digital and mobile space, our Website Media Content Liability coverage helps address risks associated with violations of privacy, plagiarism or piracy, copyright and trademark infringement, alleged defamation, libel, or slander relating to their website.
5. First Party Data Protection
Loss of a client’s data can be devastating, especially for a small business. Loss of customer lists, proprietary information and business plans can force a business to start over. AmTrustCyber is designed to reimburse the client for costs incurred to restore data from backups or from originals or to gather, assemble and recollect such data from other sources to the level or condition in which it existed prior to the breach.
Protect Your Client’s Small Business with AmTrustCyberInsurance
A Cyber Liability Insurance policy from AmTrust can help safe-guard your client’s small business against loss and damage in a cyber attack. Contact us today to find out more.
This material is for informational purposes only, summarizes coverages and services that may be available in a policy, and is not legal or business advice. Neither AmTrust Financial Services, Inc. nor any of its subsidiaries or affiliates represents or warrants that the information contained herein is appropriate or suitable for any specific business or legal purpose. Readers seeking resolution of specific questions should consult their business and/or legal advisors.
FAQs
Cyber insurance covers the liability actions that might be brought against you, arising out of a cyber event (third party loss), such as investigation and defence costs, civil damages, compensation payments to affected parties.
What does cyber insurance actually cover? ›
What does a cyber insurance policy cover? A cyber insurance policy protects organizations from the cost of internet-based threats affecting IT infrastructure, information governance, and information policy, which often are not covered by commercial liability policies and traditional insurance products.
What are the challenges for the cyber insurance industry? ›
Unlike traditional insurance, cyber insurance lacks a robust history of claims data. The scarcity of historical data makes it difficult for underwriters to accurately predict and price cyber risks. Developing models that can effectively navigate this uncertainty remains a significant challenge.
What are the risks of cyber insurance? ›
Cyber insurance, also known as cyber liability insurance, refers to a contract that enterprises can purchase to reduce the risks associated with conducting online business. Cyber insurance covers your organization's liability for most data breaches caused by a cyber security incident.
Why is cyber insurance interesting? ›
An essential part of cyber risk management, cyber insurance helps businesses respond and recover from the financial costs of a cyber event, including loss from operational disruption, remediation and recovery expenses, legal fees, reputational harm, regulatory fines and more.
Why is it difficult to get cyber insurance? ›
Demand, losses, and premiums are all on the rise
The demand for cyber insurance coverage is skyrocketing. At the same time, insurance providers' losses are growing. High demand in combination with high payouts lead to increased premiums. Businesses report premium hikes of 50% and even 100% year over year.
What is excluded from cyber insurance? ›
Cyber insurance coverage exclusions in an insurance policy can include failure to maintain standards, payment card industry (PCI) fines and assessments, prior acts, acts of war, and more.
Why is cyber insurance so expensive? ›
You could probably figure out the simple answer on your own: cyber insurance costs more because of the huge rise in data breaches and hacks in the post-COVID world. When the pandemic hit and employees started working remotely en masse, it created a cybersecurity crisis.
What are the pitfalls of cyber insurance? ›
However, the cyber insurance industry faces significant challenges, including a lack of historical data, a lack of ability to predict the future of cyber risk, the possibility of large cascading loss events, uncertainties among market participants about what is specifically covered under such policies, and legal ...
Is cyber insurance effective? ›
Cyber insurance protects against losses that result from a range of cyber incidents, including social engineering scams and ransomware attacks. But is it worth the investment? It's a resounding 'yes'.
The cyber insurance market has further matured. Looking to the future, the focus remains to meet increasing demand and manage dynamic risk exposures, while focussing on the sustainable insurability of cyber risks and market functionality.
What you need to know about cyber insurance? ›
Cyber insurance generally covers your business' liability for a data breach involving sensitive customer information, such as Social Security numbers, credit card numbers, account numbers, driver's license numbers and health records.
What cyber insurance does not cover? ›
Potential future lost profits
But they won't cover profits lost after an incident as a direct or indirect result. Devaluation of affected data, a company's diminished market share, profits lost due to reputation damage—most policies exclude such potential losses.
How common is cyber insurance? ›
The global cyber insurance market tripled in volume in the last five years, expanding to gross direct premiums of around USD 13 billion in 2022, according to the Swiss Re Institute (SRI). In just two years, the market has seen significant rate increases and re-underwriting to restore profitability.
How do you qualify for cyber insurance? ›
Strong security controls
That includes protection from internal threats, like careless, malicious or compromised insiders. If you have a remote or hybrid workforce, you may also need to demonstrate that you have people-centric security controls as well as granular policy controls based on risk, context and user role.
What do cyber insurers often require before issuing a policy? ›
Incident Response Plan
Insurers may require businesses to have a well-defined incident response plan to quickly and effectively respond to cyberattacks and mitigate their impact. An incident response plan documents your organization's processes and procedures when a potential incident is detected.
What is the need for cyber liability insurance? ›
Third-party cyber liability insurance addresses legal costs if a client experiences a data breach and sues your business for failing to prevent it. This coverage is especially important for those who are responsible for cybersecurity, including IT consultants and network security companies.
What does cyber crime insurance cover? ›
Your coverage for security breach remediation and notification expenses would include purchasing an identity fraud insurance policy, credit monitoring services, computer forensics and access to a Breach Coach for advice regarding initial breach response. Cyber insurance also can help protect you before a breach.
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