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What is cyber insurance | Cyber Liability Insurance Definition

What is Cyber Insurance

Cyber Space, Your Existence and what is Cyber Insurance | Betters Insurance

Some of the following questions that may have popped in your mind:

From where does all this information on the internet come?

  • Who shares it? Who stores it? 
  • Where is all this information stored? 
  • Are you and your business is somehow a part of all this? And if you do have something to do here, what is your liability?
  • What is Cyber Insurance?

The answer to all these questions lies in the explanation of one terminology; CYBERSPACE. The term was coined in America in 1982 by William Gibson. 

Cyber Space is a virtual world created by the Internet and Connected via the computers at offices, homes, and in our hands as phones. Yes, we all have an existence in cyber-space. All of us share data and information on it. All the data and information is on our computers, internet servers, online cloud storage, and many other forms.

To understand our existence, liability, and how can we have protection against such liabilities? We need to understand cyber-space, what we share on it, and how are we responsible? And then comes the protection and coverage part.

Recommended: How To Understand Cyber Liability Terms

What is Cyberspace? | Cyber Insurance | Betters Insurance

Cyberspace is defined earlier in the article is a virtual world of computers and the internet with all its peripherals. Some people may suggest that the internet is cyber-space. No, the internet is just a component of cyber-space, so are we and our businesses. 

You become a part of cyber-space when you connect your computer to your phone to the internet and start sharing information. 

Today, referred to as the digital world, cyberspace has become the principal component of the business. Almost all organizations today, large or small, have a website that you tend to keep updated with the latest products and services your business is offering.

All this information is readily available to every person in the world who has access to the internet. For instance, this information is available to your potential customers, regulatory bodies, nobody in an alley of a city, and the people who commit cybercrimes. Here is where you need to know what is cyber insurance?

Now comes the part of what do you as an entrepreneur do with this cyberspace? 

In recent times a trend of going paperless has caught quite the attention of the world. We try to keep all of our information either online or in softcopy form on our computers. Cloud storage facilities such as Google drive have made it very easy and almost with no physical existence. 

The same goes for our businesses and official work. Every one of us today stores all of our client details and information in our official systems. Our marketing campaigns are now more focused on social media like Facebook and YouTube. Like us, our business now has an online existence and has become a part of cyberspace.

Here comes the reality check you are not the only one using cyberspace, and you need to understand what cyber insurance is. There are entities hidden from the best of software and firewall protection called cybercriminals. Hackers, Terrorists, Virus spreaders, the data thief, they can take many forms. A wrong click to a bugged link can cause you all that you have. Your goodwill, market share, clients, property all then are at stake.

What is my cyber liability, and what is cyber insurance?

Let us say, for instance, you are a financial asset management firm. The sole business of such a management firm is to manage the assets and investments of its clients. Such a firm has all the details of its clients stored on its systems or mainframes. Then occurs a cybercrime incident, and a hacker takes all the information of your clients from your computers and destroys data banks. 

The hacker has all the vital information of your clients, their bank accounts, and investment details. Who will use it to his advantage! The consequences are not limited to property damage or business losses, but the clients will take you to court, all of which are way too expensive. Such an incident is called a data theft or data breach.

Not only is the client data at stake here. The data of your organization and its employees is also involved. Some of the main risks which arise from cyber liability are below:

  1. Stakeholders’ Liability; Your customer, your employee, your suppliers, and all who are directly or indirectly involved with your business are your stakeholders. In case of an inappropriate cyber event, all of these parties can suffer damages and losses. You legally are liable to pay for the settlement of damages and losses to their businesses.
  2. Property Damage; Generally, in instances of data theft or hacking, the culprits damage your computer systems, your storage drives, and sometimes your social media handles and websites, rendering them useless at that point. Repairs and recoveries for such electronic and digital property cost money since these do not come cheap. Such incidents may also result in downtime for your operations, which may cause further business losses. 
  3. Warning Expenses; If you have a vast customer database and you happen to incur a data loss, someone steals the data. You are legally bound to inform the customer about the incident. Notifying the clients is an expensive exercise.
  4. Lawsuits; The lawsuits are substantial risks. A client can take you to court for settlement of his damage and loss of his privacy. The fee of your lawyer, damage claims, and court fines do cost a lot of money.

How can you financially protect yourself, and what is Cyber Insurance? | Cyber Liability Insurance | Betters Insurance

The main topic of the whole discussion to know what is cyber insurance? How can you have a remediation plan to cover all the financial damages, be it the property damages you incurred during the cyber event. Or the liability you bear towards your stakeholders. To Sum up all the concerns in one question; What is cyber insurance?

What is Cyber Insurance?

If you have read what the author has written above, you are very well aware that any organization has a cyber-risk. It seems that even with the development of modern and sophisticated protection hardware and software, your organization is not safe.

Cyber liability insurance offers protection against all the cyber risks at a fraction of the cost. Cyber insurance provides coverage against any of the losses you suffer from a data loss, data theft, or breach of customers’ privacy.

Cyber and Data breach insurance has the provisions to cover damages claimed on First and third-party stakeholders. It not only provides coverage to your organization in case of a data breach. The insurance plans protect you; if one of your employees has committed fraud using the information on your database. 

Whether you have copyright infringement issues or some has used your social media handles to cause harm to your goodwill. Cyber liability insurance protects you when you unintentionally defame someone or discriminate against someone on social media.

Bespoke products and a variety of options are now available. You can insure with the correct cyber insurance plans that suit your organizational needs.

Cyber Liability insurance coverage has the following provisions, but these a few to mention to create an understanding of the advantages of Cyber Liability and Data Breach Insurance plans:

  1. Cyber insurance covers the losses you incur during the operational downtime you suffer when your systems are in a recovery mode after a cyber-attack or a technical error causing data loss.
  2. The insurance plans have provisions to help you recuperate from the damages you paid to the stakeholders as settlement of lawsuits.
  3.  Cyber insurances provide claim facilities for loss or damage of digital property, copyright mishandling suits, regulatory fines, etc.
  4. Cyber insurance agents guide you on the security measures you should take to safeguard vital information.
  5. They help you with the fee payments for your lawyers and court fines.

To sum up, you can say Cyber Liability insurance covers any network-related privacy and security issues, employee errors, social media liability, and losses due to halt operations.

For you to develop better insight regarding what is cyber insurance and what options you should take for your cyber insurance plans; contact Betters Insurance service agents or visit our page: https://bettersinsurance.com/dallas-cyber-liability-insurance/

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