Cyber Liability Insurance.

Cyber liability insurance is a type of insurance that provides protection against losses resulting from cyber attacks and data breaches. These attacks can include malware, ransomware, and phishing attacks, as well as data breaches that result in the unauthorized access or theft of sensitive data.
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As every business moves into the digital space, cybercrime is becoming more common, and is ever-evolving making it challenging for business owners to protect themselves.

As many more business enter the digital age the lists gets longer and longer. But in general, you need Cyber Liability Insurance if you're a business that stores, processes, or transmits sensitive data electronically as you may be at risk of a cyber attack, and could benefit from cyber liability insurance. This includes businesses in a wide range of industries, such as healthcare, finance, retail, and government.

Small businesses are especially vulnerable to cyber attacks, as they often have fewer resources to devote to cybersecurity. However, even large, well-established businesses can be at risk of cyber attacks, as cyber criminals are constantly developing new methods of breaching security systems.

In addition to covering the costs associated with responding to a cyber attack, such as legal fees, notification and credit monitoring services, and public relations, cyber liability insurance can also cover the costs of business interruption and loss of income resulting from a cyber attack.

There are a number of steps that companies can take to mitigate their cyber risk and protect against cyber attacks and data breaches. Some strategies that businesses can consider include:
Implementing strong passwords and regularly updating them: Using strong, unique passwords for all accounts and regularly updating them can help to prevent unauthorized access to systems and data.
Enabling two-factor authentication: Two-factor authentication adds an extra layer of security by requiring users to provide a second form of authentication, such as a code sent to their phone, in addition to their password when logging in.
Installing and regularly updating cybersecurity software: Cybersecurity software, such as antivirus and firewall programs, can help to protect against malware and other threats. It's important to keep these programs up-to-date to ensure that they provide the most effective protection.
Training employees on cybersecurity best practices: Educating employees on how to identify and prevent cyber threats can help to reduce the risk of successful attacks. This can include training on topics such as strong password management, spotting phishing attacks, and safe browsing practices.
Implementing security protocols and policies: Developing and implementing clear policies and procedures for handling sensitive data and responding to cyber threats can help to minimize the risk of data breaches and other cyber incidents.
Conducting regular security audits: Regularly reviewing and assessing the company's cybersecurity measures and identifying any potential vulnerabilities can help to identify and address potential risks.

There are several types of cyberattacks, some of which include:
Phishing attacks: This is when malicious attackers attempt to acquire confidential information by sending emails disguised as legitimate companies or individuals.
Malware attacks: Malware, or malicious software, is designed to damage and steal data from a system. Common forms of malware include viruses, worms, and ransomware.
SQL injection attacks: This type of attack targets websites or databases by injecting malicious code into the back-end system. It can be used to gain access to confidential information such as passwords and credit card numbers.
Denial of service (DDoS) attacks: A DDoS attack is when an attacker floods a network or server with requests, making it difficult for legitimate users to access the system. Social engineering attacks: This type of attack relies on social engineering techniques to manipulate people into providing confidential information or granting access to systems.  
Man-in-the-middle (MITM) attacks: These attacks take advantage of weak security protocols by intercepting messages between two parties and altering them or stealing data.
Password attacks: Attackers can use brute force to guess passwords, or they may use social engineering techniques to acquire them.
Application-level attacks: These attacks target applications and vulnerabilities in the code. They can lead to data theft, denial of service, or other malicious activities. Cloud-based attacks: Attackers use cloud computing resources (such as Amazon Web Services or Microsoft Azure) to launch cyberattacks.
Insider threat attacks: This type of attack is carried out by trusted employees, contractors, or partners who have access to an organization’s sensitive data.
Wi-Fi snooping: Attackers can monitor unsecured Wi-Fi networks and look for confidential information such as passwords or credit card numbers.
IoT attacks: These attacks target Internet of Things (IoT) devices, which can be used to gain access to an organization’s networks or cause disruption.
Supply chain attacks: Attackers can target organizations by exploiting vulnerabilities in their supply chain, such as vendors or third-party partners.
Spear phishing attacks: These are targeted phishing attacks that use personal information to make the messages appear more credible and increase the chance of success.
Ransomware attacks: Ransomware is a type of malware that encrypts files and demands payment before the user can access them.

If you want to work with a commercial insurance brokerage that puts people first and values transparency, sustainability, ownership, and impact, then Summit is the right choice for your business insurance needs.

At Summit, we craft innovative insurance solutions that are custom tailored to your business, giving you the confidence you need to succeed. Our team is dedicated to building trust and creating value through open and honest communication. We are in it for the long haul and strive to make a positive impact in everything we do.

So if you want a business insurance partner that shares your values and is committed to helping you succeed, consider working with Summit.

Cyber insurance policies typically include a variety of coverage options designed to protect against the specific risks and exposures that businesses face in the digital age. Some common coverage options that may be included in a cyber insurance policy include:
First-party coverage: This covers losses that the business directly incurs as a result of a cyber attack or data breach, such as the cost of notification and credit monitoring services for affected customers, the cost of restoring or replacing damaged systems and data, and the loss of income and extra expenses incurred if the business is unable to operate due to a cyber attack or data breach.
Third-party coverage: This covers claims made against the business by third parties, such as customers or partners, as a result of a cyber attack or data breach. This can include coverage for legal fees and other expenses related to defending against claims or lawsuits.
Privacy and Security Breach coverage: This covers losses resulting from unauthorized access to the business's systems or data, as well as losses resulting from the failure to protect customer or employee data. Cyber extortion coverage: This covers losses resulting from threats to release sensitive data or disrupt the business's operations unless a ransom is paid.
‍Incident Response Costs: Provides coverage to cover costs associated with access to a cyber incident hotline. The insurance company will appoint a dedicated representative to respond following a cyber incident.
‍Investigation Costs: Provides coverage for legal advice to investigate the cyber incident, including any associated fees.
‍Restoration Costs: Provides coverage to restore the compromised system to the original state prior to the incident.
‍Business Interruption: Provides coverage for lost revenue due to systems being down as a result of a cyber incident.
‍Social Engineering Fraud: Provides coverage for financial loss where an employee was tricked into transferring funds to a third-party outside the organization.

The main differences between cyber insurance and data breach insurance are what and who is covered. Cyber insurance provides coverage for most cyber incidents to your business (first-party) and others (third-party).

In contrast, data breach insurance only covers costs associated with damage to data you possess or are responsible for (first-party), including notification costs.

Cyber liability claims can result from a variety of incidents, including cyber attacks, data breaches, and other types of digital threats. Some common types of cyber liability claims include:
Data breaches: A data breach occurs when sensitive information, such as customer or employee data, is accessed or stolen by unauthorized individuals. This can result in claims for the cost of notification and credit monitoring services for affected customers, as well as legal fees and other expenses related to defending against claims or lawsuits.
Malware attacks: Malware is malicious software that can infect a computer or network and disrupt operations or steal sensitive data. Claims resulting from malware attacks can include the cost of restoring or replacing damaged systems and data, as well as the loss of income and extra expenses incurred if the business is unable to operate due to the attack.
Ransomware attacks: Ransomware is a type of malware that encrypts a computer or network and demands a ransom in exchange for the decryption key. Claims resulting from ransomware attacks can include the cost of paying the ransom, as well as the cost of restoring or replacing damaged systems and data.
Phishing attacks: Phishing attacks are attempts to trick individuals into revealing sensitive information or clicking on malicious links by pretending to be a trusted source. Claims resulting from phishing attacks can include the cost of restoring or replacing damaged systems and data, as well as legal fees and other expenses related to defending against claims or lawsuits.
Social engineering attacks: Social engineering attacks are attempts to manipulate individuals into revealing sensitive information or taking other actions that compromise the security of the business. Claims resulting from social engineering attacks can include the cost of restoring or replacing damaged systems and data, as well as legal fees and other expenses related to defending against claims or lawsuits.

There are a few reasons why some cyber insurance companies are now offering managed services alongside coverage:
To provide a more comprehensive solution: By offering managed services alongside coverage, cyber insurance companies can provide a more comprehensive solution to their clients. Rather than just covering the costs of a cyber incident, managed services can help prevent or mitigate the impact of an attack in the first place.
To enhance the value of the coverage: Offering managed services can enhance the value of the cyber insurance coverage by providing additional resources and expertise to help businesses address and recover from a cyber incident.
To meet the evolving needs of businesses: Cybersecurity threats are constantly evolving, and businesses need to be proactive in order to protect themselves. By offering managed services, cyber insurance companies can help businesses stay ahead of the curve and address the latest threats.
To increase customer satisfaction: By providing a more comprehensive solution, cyber insurance companies can improve customer satisfaction by helping their clients prevent and manage cyber incidents more effectively.

Overall, the trend of cyber insurance companies offering managed services alongside coverage is a response to the growing complexity and importance of cybersecurity in today's digital landscape. By providing a more comprehensive solution, these companies can help businesses protect themselves from the constantly evolving threat of cyber attacks.