Cyber Insurance in Vermont
What is Cyber Insurance?
The advent of the internet has given businesses access to opportunities that previously were unthinkable. With the new opportunities that businesses have taken advantage of, however, come new risks. Cyber insurance policies help protect Vermont businesses from many of the new risks that accompany conducting business online.
As far as insurance coverages go, cyber insurance is still a relatively new protection. There are still many variances among policies, and it’s especially important to review any policy’s terms closely before purchasing the policy. An insurance agent who specializes in cyber liability insurance can help with this process, as they’ll know how to read a policy and be familiar with what other policies tend to offer.
What Vermont Businesses Can Benefit from Getting Cyber Liability Insurance?
Because the internet is so prevalent in commerce and life today, cyber liability insurance is widely beneficial to most businesses in Vermont. In short, almost any business that could have data breached will likely benefit from having coverage. This includes (but is far from limited to) the following:
- Medical practices and hospitals, which use EHR programs for patient records
- Law firms, which regularly store and transmit sensitive documents digitally
- Financial firms, which regularly store and transmit financial data
- Ecommerce websites, which accept and store customers’ credit card numbers
- Large businesses, which often store employee data digitally
Any business that utilizes the cloud and keeps data remotely probably should also have cyber liability coverage, as should the majority of governmental agencies, schools and nonprofit organizations.
What Protections Does Cyber Liability Insurance Provide?
The coverages in cyber liability policies can vary quite a bit because the insurance is still new. Depending on a policy’s terms and conditions, it might offer protections like:
- Network Security Liability Coverage, which may protect against malicious online attacks
- Extortion LIability Coverage, which may protect against ransomware and other extortion attacks
- Privacy Liability Coverage, which may protect against non-criminal data breaches
- Media Liability Coverage, which might protect against trademark and copyright infringement allegations
Media liability coverage is often especially varied across different policies, but a knowledgeable agent can help compare the different media liability protections that policies offer. They also can help businesses confirm whether they need this specific coverage. Sometimes it’s not necessary if a business' general liability coverage provides sufficient protection against copyright and trademark issues that involve things published online.
What Costs Does Cyber Liability Insurance Cover When There’s a Claim?
Just as protections vary, the costs that different policies will help pay for if a business has a covered claim can also vary. Depending on a policy’s terms, it might pay:
- Reimbursements for revenue that’s lost during a slowing of operations
- Reimbursements for revenue that’s lost due to reputation damage
- Reparations owed to customers, clients or other parties who were affected
- Credit monitoring costs for customers or clients
- IT costs associated with identifying and fixing the problem
How Much Do Cyber Liability Policies Cost?
Premiums for cyber liability policies also vary. They differ both because policies differ and because rates are based on many different factors. Even with the variances, however, purchasing coverage is usually far less expensive than facing a major incident with no insurance in place could be. The average cost of stolen digital assets was $148 per record in 2018.
The best way for businesses to find out how much a policy would cost them is generally to contact an independent insurance agent. Unlike agents who are captive to a single insurance company, independent agents have the freedom to show businesses quotes from multiple insurance companies. This makes comparing rates easy.
How Can Businesses in Vermont Get Quotes for Cyber Insurance?
For help obtaining quotes for cyber insurance, contact the independent insurance agents at T.S. Peck Insurance. Our team has helped many businesses in Vermont find coverage that meets their needs, and we have the expertise necessary to find your business a good policy.