Article June 21, 2021

Cyber privacy liability insurance

Cyber and privacy matters. Businesses can protect themselves and their clients from cyber privacy breaches with unrivalled incident response and award-winning cover with CFC cyber insurance.

What is cyber and privacy insurance?

Cyber privacy liability insurance, also referred to as privacy liability insurance or simply cyber insurance, is designed to cover the ramifications of malicious cyber attacks, digital security, or privacy breaches experienced by a business. Cyber and privacy attacks predominantly exploit businesses for financial gain or sensitive information, both of which can be costly to recover from. 

While the online world has created amazing opportunities for businesses everywhere, it has also exposed them to criminals around the world. With cyber and privacy insurance, businesses have access to a dedicated cyber incident response team 24/7 for whenever a crisis strikes. Cyber and privacy insurance holders with us also have access to our award-winning cyber incident response app to identify potential risks before they can be exploited.

How cyber and privacy risks have evolved

Cyber and privacy risks are evolving rapidly as businesses take on new technologies and digital tools. With cyber criminals becoming increasingly sophisticated and new threats evolving rapidly, cyber crime and privacy threats now need to be understood by everyone. 

With cyber and privacy insurance, businesses have access to a dedicated cyber incident response team 24/7 for whenever a crisis strikes.

Just a few years ago, the primary goal of cyber criminals was to exploit business weaknesses for credit card details and payment information. Today, as businesses rely more heavily on technology, more entry points and vulnerabilities are emerging. Still motivated by money, ransomware, phishing and denial-of-service attacks are now some of the biggest threats to cyber and privacy security.

Managing cyber privacy risks

To stay on top of cyber privacy risks, it is important to evaluate business security at regular intervals, analyze the weaknesses, and prioritize addressing those that present the greatest risk. 

Employee training is one of the most effective ways to protect businesses in the face of phishing attacks. In cyber and privacy attacks such as these, employees act as the last line of defense. Keep all business personnel up-to-date with the latest trends and evolutions in cyber crime and privacy breaches to establish a base of protection across the organization.

With our cyber privacy liability insurance cover, identifying risks and developing a fast-acting incident and response plans is made easier. Receive alerts for critical vulnerabilities identified by our team with the CFC mobile app, Response, and recover quickly with the largest in-house response team in the market.

Online and offline privacy liability exposure

Privacy and cyber security is not contained to the digital world. Exposure can occur as a result of both online and offline activities and threats. 

Criminals can also present themselves to businesses in person or over the phone to gain physical access to devices containing sensitive information. Tech support scams are a common form of offline cyber attack. Impersonating technical support staff, these criminals will either attempt to physically or remotely access company devices to extract financial or personal information. 

Restrict physical access to business devices with physical security measures, strong passwords, and multi-factor authentication, and prohibit sharing of company devices to avoid transmission of information to unauthorized personnel. Include a remote access and deletion policy for lost or stolen company devices. 

CFC cyber and privacy liability insurance can cover businesses in the event of offline as well as online attacks. With cover for repairing digital and physical damaged assets and support from dedicated cyber and privacy liability experts with over two decades of industry experience, we’re able to help businesses get back up and running as soon as possible.

Types of cyber and privacy insurance claims

Types of insurance claims will depend on the scale and severity of the attack or privacy breach. First party claims often involve:

  • Repair to damaged physical or digital assets
  • Funds stolen as a result of a security breach
  • Forensic and legal costs for incident response
  • Crisis management costs such as public relations firms fees
  • Credit monitoring costs to mitigate risks for affected parties

Third party cover is also included in our cyber and privacy insurance policies. Third party claims can often include:

  • Coverage for breaches of contracts or negligence as a result of a breach
  • Support to manage transmission of malware between other devices or systems
  • PCI fine coverage
  • Coverage for breach of personal identifiable information (PII) or sensitive corporate information

The type of claims that can be made against cyber privacy liability insurance will also depend on the extent of cover.

With cover for repairing digital and physical damaged assets and support from dedicated cyber and privacy liability experts with over two decades of industry experience, we’re able to help businesses get back up and running as soon as possible.

What’s included as part of cyber privacy insurance coverage?

CFC cyber and privacy liability insurance protects businesses in the event of first and third party losses caused by cyber crime and privacy breaches. 

Incident response, including costs to cover legal fees and IT forensic investigations into the incident, are covered by our cyber and privacy insurance. Our policy also gives customers access to the largest in-house cyber response team on the market and over 20 years of professional experience.

System damage and financial loss can be one of the most costly consequences of a privacy or security breach. Repair to damaged assets and financial loss as a result of technological downtime is also addressed under our cyber and privacy liability policies.

Cyber privacy insurance FAQs

  1. Why do small businesses need cyber security and insurance?

    Any business, regardless of size, can benefit from cybersecurity protocols and insurance cover if they rely on technology for business processes. 

    Small businesses can be particularly vulnerable in some instances, especially if they assume that they will not be a target and do not adequately protect themselves. Cyber and privacy insurance can offer valuable financial support to help small businesses recover in the event of a privacy breach.

  2. How much does cyber insurance cost?

    The price of cyber insurance will vary according to business size and industry, but is still very competitively priced in relation to the risk cyber and privacy events create. 

    Certain industries, such as those dealing with high volumes of sensitive data, financial information, or capital on a daily basis are more of a target for cyber criminals. They present greater potential gain for cybercriminals and breaches can halt a large number of business operations.

    If you are a broker looking for a quote for our cyber and privacy insurance cover, speak to a member of our cyber underwriting team today.

  3. Why should companies get cyber insurance?

    Cyber attacks pose a threat to any business which relies on technology for day-to-day operations and information collection and storage. These days, that includes almost every business across all industries.

    With cyber crime becoming increasingly sophisticated, businesses who make the mistake of assuming that they will not be a target leave themselves vulnerable. Businesses such as financial institutions, those in the healthcare industry, and those in professional services are often prime targets for cyber criminals due to the high volume of sensitive information they handle. What’s more, cybercriminals are increasingly targeting businesses that manage little or no sensitive data at all, making a cyber and privacy insurance policy something every business should consider. 

Want to learn more about CFC’s cyber policy? Visit our product page or check out our other great cyber-related resources.