Cyber Liability Insurance in Minnesota
Key Points:
- Cyber liability insurance in Minnesota is vital for recovering costs that result from a cyber-attack or data breach.
- Determining your organization’s cyber insurance needs can be challenging.
- Cyber insurance applications can be complex and require highly technical information that can be challenging for the average business person to provide.
- Consulting with a team of cyber security experts can ensure that your application for cyber security insurance is complete and accurate and that you have the cyber security solutions needed to simplify the application process.
Cybersecurity is a very complex subject with many variables. Since the topic is too broad and complicated to cover entirely at once, we’ll cover the importance of having the right cyber liability insurance in Minnesota to protect your organization.
What Is Cyber Liability Insurance and Why Do You Need It?
Cyber security liability coverage protects your organization from legal action taken by a third party to recover damages due to a cyber-attack or data breach. Whatever the size of your organization or whether you serve businesses or individuals, you may be liable for damages if a cyber attack against your organization causes the information to be compromised.
The potential for a liability claim due to a cyber attack is more likely than many think. Data shows that cyberattacks increased by over 50% in 2021. In addition, cyber security experts and government officials believe that all organizations have increased risk exposure due to global events and the prevalence of attacks organized by malicious nation-states.
Cybercriminals are increasingly targeting small to mid-sized businesses. A ransomware attack can halt your business and leave you liable for your customer’s financial losses. Cyber security liability coverage protects your business in the event of a cyber attack and typically pays for:
- Attorney and court fees related to legal proceedings due to the event
- Settlements and court judgments resulting from the attack
- Regulatory fines for non-compliance
What Does Cyber Liability Insurance Cover?
According to cyber security and insurance experts, cyber insurance can be vital in helping your organization recover after a data breach. A security breach exposes your business to a wide range of unexpected expenses, including expenses related to the following:
Business Disruption
A cyber attack can hurt your organization, including disrupting your operations. Business disruption from a cyber attack can result in a loss of productivity and make it impossible for your staff to provide services to your clients.
Lost Revenue
It’s essential to understand the financial repercussions of a cyber attack fully. The costs and damages can vary, but they can devastate many organizations. For example, a cyber-attack can cripple your operations, causing indefinite downtime throughout your organization. In addition, your employees may be unable to access the systems necessary to produce revenue, leaving customers unsatisfied and costing you revenue.
Lost Devices
The state of the workforce has changed dramatically over the past few years, and today employees are more mobile than ever. The increased use of laptops, tablets, smartphones and other mobile devices means keeping track of them is more complicated. Devices can leave the workplace and become lost, stolen, or compromised. A lost device in the wrong hands can potentially expose personal and sensitive data.
While it’s impossible to prevent lost devices and theft, there are steps you can take to protect and limit the amount of data on each device. For example, implementing procedures for creating effective passwords and mandating periodic password changes is imperative. Additionally, in the event of a data breach, a cyber insurance policy can provide coverage against the failure to prevent unauthorized access or use of data.
Legal Fees and Legally Mandated Notifications
Companies of all sizes must adhere to privacy and data protection laws. These regulations require your business to ensure the security of all personal data handled by your organization. Failure to comply with these regulations can result in heavy fines and regulatory sanctions.
In addition, notifying customers of a security breach is mandated by law. Organizations of all sizes can incur substantial legal fees due to the mishandling of personal data. Therefore, as part of a cyber insurance policy, your coverage typically includes the costs associated with all legally required notifications and legal fees.
Forensic Analysis
Forensic analysis is performed after a security breach occurs. This process helps determine the extent of the breach and whether it exposed personal and sensitive customer data. Your cyber liability insurance coverage may include the cost of forensic analysis after a cyber attack. Your policy may also cover losses and expenses while your business recovers. Cyber insurance ensures that you have the resources to respond effectively to a cyberattack or data breach.
Public Relations Expenses
A cyber attack or data breach can become a public relations issue that can damage your organization’s reputation. Research has found that many consumers will avoid doing business with companies that have experienced a security or data breach.
If a cyber attack is severe enough and causes substantial damage, there is the possibility that your organization could suffer a decrease in company valuation. In addition, if your reputation suffers significantly from an attack, it can lead to lost customers, loss of revenue, and discouraging financial forecasts.
Cyber Liability Insurance in Minnesota
Navigating the maze of cyber insurance can be a daunting task. Cyber insurance applications are becoming increasingly complex and technically exhausting for the average business professional. In addition, the technology involved with cyber insurance goes far and deep. Therefore, it’s vital that you have the right partner in your corner to help you make sure you get the right coverage and that you’re appropriately protected when a cyber attack or data breach occurs.
At On-site Computers, we ensure you get the cyber liability coverage your organization needs. Our team of experts ensures your cyber insurance application is completed correctly and that you have the required cyber security solutions in place to protect your organization adequately.
Don’t neglect cyber insurance or think cybercriminals will never target your organization. Cyber liability insurance is something you don’t want to overlook. Contact us today and start a conversation immediately to ensure all your bases are covered.
