Cyber Liability Insurance
What is Cyber Liability Insurance?
With cybercrime rampant, it should come as no surprise that it’s more vital than ever before to invest in proper cyber liability insurance for your business. Cyber liability insurance provides coverage for businesses that collects or sells information online.
The most common cybercrime perpetrated against businesses is data breaches; a cyber-attack where personal information (such as name, address, and payment information) are compromised. Companies that store personal information are liable for all data stored within their electronic database.
Cyber liability insurance offers a range of policies that provide coverage for data breaches.
What is included in Cyber Liability Insurance?
Cyber liability insurance will provide coverage for the following.
- Credit monitoring
- Loss resulting from identity theft
- Notification costs
- Penalties and fines
- Costs associated with defending claims by state regulators
Cyber liability insurance will also provide coverage for:
- Cyber extortion
- Business interruption
- Cyber fraud
- Loss of data
What are the benefits of having Cyber Liability Insurance?
Cyber-attacks can be devastating – they interrupt day-to-day business operations, lead to lost profits, and open businesses to potential lawsuits. Cyber liability insurance help to mitigate that threat. Benefits include:
Cyber Extortion Defense
Data Breach Coverage
Loss Reimbursement for Business Interruption
One of the most common forms of cyber-attacks is ransomware, a malicious virus that locks out a victim’s computer in exchange for a financial ransom. Companies affected by ransomware have been known to pay millions of dollars to regain control of systems vital to day to day operation. It’s vital that businesses in the cannabis industry adopt cyber liability coverage to protect themselves from potential ransomware attacks.
By law, companies are required to report database breaches to affected individuals. Even when the initial situation has been dealt with companies will still be responsible for paying massive fees to enhance their security. Businesses must also contend with legal fees (in the event of lawsuits). Cyber liability insurance provides coverage for all fees associated with a data breach.
Cyber-attacks can freeze the day to day operations of a business. This could result in mounting expenses that can put a business in a serious financial bind. The right cyber liability policy may protect your business from lost income until your systems are back up and running.
Tips for Choosing Cyber Liability Insurance for Your Cannabis Business
The cannabis industry is just as vulnerable to cyber-attacks as any other industry. Picking the right cyber liability insurance is vital to protecting day to day operations and keeping the personal data of both your business and your customers safe.
Simply weathering a cyber-attack isn’t enough. You’ll need to perform an investigation to get to the root of the matter. Depending on your needs try to be on the lookout for cyber liability insurance that offers an in-depth level of support that includes reimbursement for expenses related to forensic investigations and consultation.
No matter how severe a cyber-attack is, you should expect some form of legal backlash. Legal troubles are never cheap, so you’ll want to find cyber liability insurance that can help you cover the costs of lawyers and any other expenses associated with legal matters.
While general liability has its uses, most policies of this nature generally provide coverage for physical assets, but may not include cyber losses. Data is becoming increasingly valuable. It’s vital that you choose the right policy for your business to protect your valuable data.
Get a Cyber Liability Insurance Quote
With cybercrime rampant you’re going to need an insurance policy to protect your business. We can help you with that. Cannabis Connect Insurance passionately serves the cannabis community and our team of professionals will work closely with your business to ensure you find the right coverage.