Navigate Cyber ​​Liability Insurance | Columns

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As you may know, a cyberattack is an attempt by hackers to damage or destroy a computer network system belonging to a company or an individual. Unfortunately, despite our best efforts to stay safe, any of us can fall victim to a cyberattack at any time. So how can you protect your computer system from immeasurable damage? There are many ways, but we will explore one in particular known as cyber liability insurance.

For context, the first cyber liability insurance policy was written in 1997. At that time, coverage was intended to protect commercial policyholders from third-party lawsuits alleging that an insured had failed to protect data. personal data of said third parties. For example, if a retail store’s computers were hacked and credit card numbers stolen, the owners of those credit cards would likely take legal action against the retail store and accuse the entity of failing to protect their credit card information correctly. As a result of these types of claims becoming more frequent and catastrophic, the insurance market developed a product to meet the need, and cyber liability insurance coverage was born.

Today, cyber liability coverage has evolved to cover many more business expenses arising from a claim, including first and third party damages. Examples of first-party damages are numerous and include the costs of replacing or recreating data, the costs of notifying customers of a security breach, the costs of repairing a company’s reputation, and refunds of streams. lost revenue. The policy can even provide coverage against risks such as cyber extortion, social engineering, and possibly government fines or penalties resulting from a breach. Hedging terms can be very broad with a wide variety of limits and hedging structures such as shared limits or dedicated limits. Limits of $1,000,000 to $5,000,000 are commonplace.

Additionally, today’s market is finally beginning to design cyber liability coverages for the private citizen. For example, individuals can purchase cyber insurance for their personal property. Previously, coverage for hacks, such as credit card theft, was primarily covered by the services of a credit card provider. Now consumers can purchase policies that protect against loss and can include coverage for cyber protection legal fees, data recovery costs, system restoration costs, cyber extortion, online fraud and cyber bullying. . Depending on the insurer and their preferences for writing a stand-alone policy or for an owner’s policy endorsement, insurers may offer different terms of coverage with different levels of coverage limits. Limits of $25,000 on a personal policy are made available by some insurance companies.

So how can you protect yourself from this significant risk? The best thing to do is to speak with a professional. For commercial risks, an insurance broker is a great place to start. They can advise you on key cover items and local market availability, as well as discuss your risk profile to help you find the best solutions designed for your exposure, needs and budget.

For personal risks, a personal lines insurance agent is also a great place to start. Unless someone is spending time researching cyber coverage themselves, it is difficult to know what coverage terms may be best for an individual. A personal agent can guide you through the process and help you obtain the best coverage terms at the best price for your particular risk.

Keeping abreast of insurance matters can be an overwhelming process, especially given the many facets of your unique situation. At ACNB Insurance Services Inc., like other full-service insurance agencies, we often serve individuals and businesses in our community and maintain the specialized skills necessary to help you protect what matters most to you.

Mark A. Westcott is President and CEO of ACNB Insurance Services Inc., a subsidiary of ACNB Corporation and a subsidiary of ACNB Bank, with offices in Gettysburg to serve your insurance needs.

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