Cyber Liability Insurance Solutions for IT Firms
Data breaches are one of the biggest threats for technology companies, large and small. For most IT consultants and smaller tech businesses, the biggest data security risk has to do with their client’s data – digital information that is very valuable in today’s environment. The related costs involved in the event of a cyber incident can be significant in addition to the reputational damage for an IT firm. In fact, according to the National Small Business Association’s Year-End Economic Report, cyber attacks cost small businesses an average of $20,752 per attack in 2015, a dramatic increase from the $8,699 average in 2013.
We offer Cyber Liability insurance for IT firms as part of our specialty in insuring this sector.
First-Party Cyber Coverage
This component of Cyber insurance addresses the high cost of a data breach. In the event information is compromised, the policy will pay for the costs involved in:
- Notifying clients about the breach
- Forensics to determine breach source
- Good-faith advertising or PR campaigns to restore a firm’s reputation
- Credit monitoring services for affected clients
- Cyber extortion demands/ransomware
Third-Party Cyber Coverage
This coverage responds if an insured’s client suffers a data security incident on their devices, networks or systems, and sues the IT firm to recover damages. Included in the coverage are:
- Attorney fees
- Court costs
- Settlements or judgments
Third-party coverage can be included with a technology firm’s Professional Liability insurance program.