In 2019, $4,661,744,000 in commercial insurance claims were paid in Kentucky. Your business has a variety of exposures. Some can happen in as little as a single click. Cyber liability insurance is necessary for most companies.
Fortunately, an independent insurance agent can help with carrier and premium options. With access to several markets, you'll save on coverage. Get connected with a local expert for the best quotes in town.
What Is Cyber Liability Insurance?
Most businesses are without cyber liability insurance. Coverage has exploded in the past decade as more and more companies use software and computer systems to run their operation. Some still have a hard time obtaining a policy because they simply may not be aware of it.
Cyber liability in Kentucky will be separate from your other business policies. It will protect your business from a cyberattack and all the damages and expenses that come with it. Check your coverage options to see if you have proper protection.
Cyber Liability Insurance Cost
For most business policies, prices are individualized and specific to your operation. Cyber liability is no different, and there is not a one-size-fits-all approach. Take a look at what carriers use to determine premiums:
- Gross annual income
- Cyber protection plans in place
- Updating of software
- Type of data stored
- Access points to data
- Malware used
- Prior claims
Sometimes cyber liability can be added to your business owners policy. In this case, your limits may be generic and only cover up to a certain amount. For a more comprehensive approach, separate cyber liability insurance may be necessary.
Who Needs Cyber Liability Insurance?
If you use as little as an email service for your business, cyber liability insurance is needed. One click from a staff member, and your entire system could be compromised. Take a look at where cyber liability insurance is most helpful:
- If you own a business, whether small or large
- If you use email
- If you have internet
- If you utilize software and computers
- If you obtain employee or client data electronically
Cyber Liability and Data Breach Insurance
Data breach coverage is included in your cyber liability policy. The two limits work in conjunction with one another, depending on the stage of the claim. Check out how it works:
When data breach coverage applies
Data breach coverage will apply when you have a breach of data and you need to restore what was compromised. Coverage can be in the form of alerting the public of the breach, a fraud alert, identity restoration, consulting services, and more. This coverage is utilized first.
When cyber liability insurance applies
Next, cyber liability insurance would apply when an employee, client, or member of the public files a lawsuit. The lawsuit is due to the data breach that occurred and the theft of sensitive information. Cyber liability will pay for legal defense and settlement costs.
Cyber Liability Insurance for Law Firms
If you own a law firm in Kentucky, you are aware of all that can go wrong. Your clients' sensitive information is on the line when you don't have the proper protection in place. Several things could unravel with a case if data is exposed.
Your reputation as a law office would be at risk as well. If any future clients get wind that their information could be accessed so quickly, they may think twice about doing business with you. When attorney-client privilege is of the utmost importance, your law insurance should be as well.
Cyber Liability Insurance for Small Businesses
In Kentucky, there are 351,260 small business owners. The majority have online exposures that could be compromised. When you are putting sensitive data in electronic form, it becomes at risk.
Unfortunately, most small businesses cannot withstand an extensive legal battle resulting from a cyber liability claim. Your cash flow would need to be sufficient to allow you to fight a lengthy court case. It's best to be proactive and have the right coverage before a loss occurs.
Cyber Liability Insurance for Technology Companies
If you own a technology company in Kentucky, you're aware of online risks. The threat of information getting stolen is real. While some technology businesses carry cyber liability coverage, there are still many that don't.
You may think that the amount of cyber liability insurance in your business owners policy is adequate, but it's usually not. Most carriers allow a limit of $25,000 to cover a cyber claim, but that usually won't give enough protection. To be accurately insured, a separate cyber liability policy is required.
How to Connect with a Kentucky Independent Agent
If you own a business in Kentucky, you're likely to need cyber liability insurance. The way most companies operate these days, there are hardly any that deal only on paper. Cyber liability insurance is often overlooked, which leads to financial ruin for some.
Fortunately, an independent insurance agent can help with policy and premium options. They know how to navigate the world of insurance and can do it at no cost to you. Connect with a local expert on TrustedChoice to begin.
TrustedChoice.com Article | Reviewed by Jeffrey Green
©2020, Consumer Agent Portal, LLC. All rights reserved.