Alpharoot

Cyber Liability

Cyber insurance protects companies from third-party lawsuits relating to electronic activities (i.e., phishing scams). Plus, it offers many recovery benefits, supporting data restoration and reimbursement for income lost and payroll spent.


Who is Cyber Liability Insurance for?

Given US data breaches cost an average of $4.24 million, all-sized cannabis companies should have cybersecurity top-of-mind. Cybercriminals scout businesses with fractured processes and technology, executing sophisticated multi-tiered attacks to infiltrate the company’s network. Loads of personal identifiable information (PII) are stolen every year, resulting in third-party lawsuits, plus fines and penalties from regulators.

Unfortunately, over half of these vicious attacks happen because of employee mistakes, making the breaches and subsequent losses avoidable. Cyber insurance is an evolving policy that helps protect companies against the damages sustained in a cyber attack. Consider the cost of data restoration, credit monitoring, and reimbursement for income lost and payroll spent — it’s astronomical. However, this policy is designed to cover these specific damages.

Employers

If you have employees who generate online content and could encounter a phishing scam, you face cyber liability risks. The potential exists for hackers, viruses, and malicious code to cause damage throughout the entire virtual enterprise.

Online Networks

Cyber liability risks exist if you collect any personal data, have login features on your site, or integrate with another company’s systems.

Information

Do you have clients who rely on your programs or software in their operations? Anyone handling PII (Personal Identifiable information) faces cyber liability exposure.

Why you need
Cyber Liability Insurance?

Protects against financial loss and notification expenses

Covers forensic investigations and data recovery

Helps cover legal costs and lawsuit settlements

50%

Cyber attacks increased by 50% in 2021.

$4M+

The average cost of US data breaches is about $4.24 million.

37%

Roughly 37% of global organizations said they were the victim of a ransomware attack in 2021.

What does Cyber Liability
Insurance cover?

You will have to consult your policy documents to confirm exactly what coverage your insurance provides but here are some examples of what is covered by cyber liability insurance

Lost or Damage to Electronic Data

This policy covers losses caused by damage, theft, disruption or corruption of your electronic data by a cybercriminal via an attack.

Loss of Income

Cyber policies cover income losses and extra expenses that result from an interruption of your computer system.

Cyber Extortion Losses

Cyber extortion coverage applies when a hacker or a cyber thief breaks into your computer system and threatens you and your business.

Notification Costs

In addition to covering the cost of notifying affected parties, this policy can also cover the cost of providing credit monitoring and hiring an attorney.

Reputational Damage

This policy can cover marketing and public relations costs to protect your company’s reputation following a data breach.

Forensic Investigation

Cyber liability covers the cost of hiring a forensic investigator to collect data so that authorities can catch a cybercriminal.

Cyber Liability Insurance Enhancements

Cyber Liability Insurance Enhancements

Cyber Liability Insurance
Claim Examples?

Software Issues

Software experiences an issue from a cyber-related issue; clients are affected by this. This policy mitigates any gaps in protection for your services and supports restoration costs if you experience a cyber attack.

Compromised System

If your system or software has been compromised, data restoration services can be costly — cyber policies can pay this bill after a covered loss.

Cyber Liability Insurance FAQ’s?