Cyber Insurance in Maine
Allen/Freeman/McDonnell Agency
Cyber Insurance
- What Is It?
- Who Needs It?
- Coverages Offered
Cyber insurance provides specialized protections against digital and online risks. In the event of a covered incident, policies may cover legal costs, settlements, and other expenses.
Cyber liability insurance is something that most businesses in Maine should have now. Almost every business is exposed to at least some digital risks, and the cost of a breach can be expensive.
- Employee Privacy Liability Coverage
- Network Security Privacy Liability Coverage
- Electronic Media Coverage
What is cyber insurance?
Today’s businesses face a growing threat that wasn’t nearly as common a few years ago — cyber risks. From accidental data breaches to malicious website attacks, businesses and other organizations need to protect against these types of risks. Cyber insurance may help businesses in Maine protect themselves.
Cyber insurance provides specialized protections against digital and online risks. In the event of a covered incident, policies may cover legal costs, settlements, and other expenses.
Which Maine businesses need to have cyber liability insurance?
Cyber liability insurance is something that most businesses in Maine should have now. Almost every business is exposed to at least some digital risks, and the cost of a breach can be expensive.
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What incidents does cyber liability insurance cover?
Cyber liability insurance is available for most industries, and can provide businesses with protection against a range of potential risks that they’re exposed to. Some examples of when it could be useful are as follows:
- Bank has its customers’ account numbers and social security numbers stolen.
- Attorney accidentally sends a client’s confidential information over to an opposing party.
- Medical office violates HIPPA by sending the wrong patient’s EHRs
- Retailer has customers’ credit cards stolen by a skimmer on the store’s card reader
- Any business’s employee divulges sensitive information to a phishing scam
- Any business’s employee loses a laptop with confidential data when traveling
Exactly which incidents are covered by a particular cyber liability policy depends on the policy’s specific terms, and terms can vary a lot. An insurance agent who knows cyber liability policies well can review what a chosen policy would likely cover.
What coverages should businesses look for in cyber liability policies?
Cyber policies often come with multiple coverages, each of which can add valuable protections. A few common coverages that businesses may want are:
- Employee Privacy Liability Coverage: Could protect against situations where employees’ personal data (e.g. SSNs or direct deposit accounts) is compromised.
- Network Security Privacy Liability Coverage: Could protect against data breaches that lead to violations of federal or state laws, such as HIPAA violations.
- Electronic Media Coverage: Could protect against claims related to trademark infringement, defamation, or plagiarism filed because of content published online.
Do cyber liability policies cover third-party data breaches?
A third-party data breach can be costly for a business. Even if it’s not the business that’s successfully hacked, affected parties might sue both the third party that was hacked and the business they gave sensitive information to. This can at least lead to costly legal fees.
Some cyber liability policies may offer protection for data breaches that occur at third-party service providers. This isn’t a standard protection in most policies, and not offered by all policies. An insurance agent who specializes in cyber liability can help check whether it’s available within a chosen policy.
What categories of threats do cyber liability policies cover?
Cyber liability policies might protect against a range of now-common digital threats. These could include:
- Network security breaches
- Computer or server attacks
- Phishing email scams
- Internal theft of digital files
- Accidental breaches due to human error
Should a business be impacted by a covered threat, a policy might cover credit monitoring costs, lost revenue, legal fees, and other related expenses.
Does commercial property insurance extend coverage to online data?
Commercial property insurance generally covers physical assets, and typically doesn’t extend to coverage digital data. To protect digital assets, such as data and software, businesses should plan on getting cyber liability coverage.
For instance, a commercial property policy would likely protect computer and server hardware. It probably wouldn’t protect anything stored on computers or servers, though. What’s on them usually falls under cyber liability.
Where can Maine businesses get cyber insurance?
If your business or organization doesn’t currently have robust cyber insurance, contact the independent insurance agents at Allen Freeman McDonnell Agency. Our team will work with you to review cyber coverage needs, and then help you find a policy that meets your specific needs well. Together, we can keep your Maine business protected against many of today’s digital threats.
