Is My Business Covered in the Event of a Cyber Attack?
Insurance Neighbor • November 19, 2022
The Costs of a Cyber Breach
- Legal costs
- The cost of a forensic investigation to identify who was affected by the breach
- Potential fines and penalties
- Credit monitoring for affected customers
Cyber Insurance and Exclusions
Types of Data Breaches Affecting Businesses in the USA
- Confidentiality Breaches: These attacks involve an outside individual gaining access to private business and client information by accident. When this occurs, the affected patient, customer, or client can file a legal claim against the business to seek compensation for revealing private information.
- Availability breaches: This type of breach is typically associated with ransomware, when huge blocks of data may be lost or destroyed, even if the ransom is paid.
- Stolen information: An employee may access client information on a home device or phone, which opens the door for bad actors to gain access to client data, which they then sell to others involved in criminal activity.
- Confidential data breach: An individual, either within the business or outside the business, gains access to private information and steals it from the business. These breaches may not be noticed for many months, as the individual may work within the company and did not leave a visible trail.
After a Cyber Attack, Will Fines be Assessed?
Get Help When Choosing Your Business Cyber Insurance
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