- Paul.
Cyber Liability, it just maybe the new Must Have Insurance...

Cyber Insurance, why it is important.
We see the headlines month after month: Ransomware attack, company paid $500,000 to get their files unlocked, Chain store, customer files "HACKED", Payroll clerk loses laptop. The costs from data breaches and cyber-attacks run into the tens or hundreds of millions for many companies form small all the way up to large, and even public companies.
Did you know that most cyber-crimes and attacks aren’t widely reported?
Almost every week, ransoms are paid, breaches are remediated, and fines are levied, and most of the time without being reported to the public.
With these costs presenting a significant (and too often, existential) threat to organizations, it’s no wonder the demand Cyber Insurance continues to grow year over year.
What is Cyber Insurance?
As cyber-attacks have become more common and more effective, carriers have begun adding exclusions to ensure that damages from cyber events are not covered under property, crime, and general liability policies. Even where cyber is not excluded, the coverage offered through endorsements to non-cyber policies does not generally provide broad enough coverage, or high enough limits, to have a meaningful impact for insureds in the event of a major cyber-related claim.
Why Do I Need Cyber Liability Insurance?
Even with extensive cyber security systems, businesses may still fall victim to cyberattacks or data breaches. For example, hackers may access your hard drive that contains confidential client data, such as their credit card information, or a medical office that stores patient healthcare records and medical insurance data.
Your other commercial insurance policies may not adequately cover the losses to you or your clients from these events. However, a cyber liability insurance policy may help mitigate these exposures and reduce your business’s out-of-pocket burden.
What Does Cyber Liability Insurance Cover?
Underwriting methods have improved as of lately, Cyber policies have become much broader. Just a few years ago, Cyber policies covered only a narrow set of direct costs associated with specific cyber-attack types. Current Cyber policies cover a broad array of potential losses that stem from almost any cyber-related incident.
Common incidents that trigger claims include:
Ransomware attacks - hackers lock up files or devices and demand a ransom payment in exchange for release
Data breaches - confidential data is stolen or otherwise exposed
Wire fraud - an employee is tricked into sending money to a scammer
System failure - shutdowns due to system outages that may or may not be malicious in nature
Cyber liability insurance policies may offer coverage for events such as:
System failures
Data breaches
Accidental information releases
Malicious destruction of data
Lost electronic devices
Phishing emails
Malware attacks
These and similar events can impact both your business. Cyber liability policies may provide financial assistance to:
Alert affected parties that a data breach occurred. These notifications may be required by law.
Pay for crediting monitoring for those at risk of identity theft.
Cover income lost during the interruptions these events cause.
Pay for cyber-extortion-related expenses.
Retrieve lost data.
Repair reputational damage.
Investigate the cause of the cyberattack.
Additionally, coverage for legal expenses related to third-party lawsuits surrounding a cyberattack or data loss may also be available. This may include payments for defense costs, settlements and judgments. Policies vary, and your agent can provide more details on policy terms, limits and exclusions.
At this point you probably have a list of questions going through your mind, we understand, it's a lot to assess, especially with cyber insurance still being pretty much a new coverage for most. Not to stress, contact Peloton Insurance Brokers, and have a chat with one of our senior brokers, there is no rush, no limited time, and questions will get answered, even if we have to get back to you.
Contact us today online here or give us a call (949) 359-1380