Inceptus Now Offers Zeguro Cyber Insurance

Cyber liability insurance covers the cost for a business to recover from a data breach, virus, or other cyber attack. It also covers legal claims resulting from the breach. Any business that stores sensitive data in the cloud or on an electronic device should have cyber liability insurance. Without big technology departments and IT staff, small businesses are most likely to need cyber liability insurance. This type of small business insurance will help you respond effectively to a cyber breach, cover your costs, and quickly move on.

The short answer to that question is: Everyone. Every type of commercial entity – meaning municipalities, non-profit organizations, educational institutions, and corporations – needs cyber insurance if they collect, process or store employees’ or customers’ personal or financial data, or if they have proprietary intellectual property.

Possession of this information makes these entities targets, pure and simple. You see the metrics on how often attacks are directed toward your own company. All it takes is one successful attack to cause a costly data breach.

1. Standard business liability insurance policies don’t cover cyber liability, and that probably won’t change any time soon. A separate policy or policies are required to address your specific cyber risks. 
2. Insurance puts a monetary value on your organization’s cyber risk. This metric is useful when discussing security budgets and risk tolerance levels with senior management.
3. Cyber insurance policy could bring supplemental value through the inclusion of risk mitigation tools as well as significant incident response assistance following a cyber incident. A carrier might require that you have specific incident response vendors in place before an event ever happens.
4. Your company might have a business relationship that requires that you have a cyber insurance policy; for example, if you process sensitive data for another company. In that sense, your company is a third-party risk to your client, which is also trying to reduce its risk of doing business with you. By the same token, if your company uses a third party to process or store your data – and this includes a cloud service provider – then you are legally responsible for safeguarding that data. Having cyber liability insurance might protect you if your third-party host suffers a breach. Note that third-party liability is sometimes an exclusion that needs to be negotiated into your policy agreement.
5. Numerous information security and data privacy laws impose hefty fines for non-compliance and outright violations. Such fines can put a significant burden on your organization. For example, the European Union’s General Data Protection Regulation (GDPR) can impose fines of up to €20 million or 4% of annual turnover (sales) if non-compliance of this privacy directive can be proven. PCI DSS states that merchants that are at fault for payment card breaches can be fined $50 to $90 per cardholder data compromised. Regulatory fines can add millions or even tens of millions of dollars to the cost of a breach.