As a security professional, you are taught what to do in case of a data breach. You know who to contact, steps to take to control the situation and ways to prevent it from happening again. But who is exactly going to cover all of these extra cost and what do these cost entail? CLIC (Cyber Liability Insurance Cover) is your answer to anything that is associated with cybercrime incidents. CLIC has been around for roughly 10 years as a sole insurance plan that companies can purchase. There are many costs involved with a data breach, and depending on the size of your company CLIC might be a valuable option for you to not only cover the upfront cost but to get back up and running in a timely bases.
What are some of the costs that can be covered with CLIC?
When choosing your CLIC, it is important to insure all aspects of a data breach are covered. The following items should be included in any Cyber Liability insurance.
-Network Security Liability, this mostly deals with companies that host data on third party networks. If something on their network goes down during a data breach, this liability will cover your loses including any denial of service due to outage, cost related to downtime and costs related to data loss due to theft.
-Multimedia/Media Liability Coverage, this coverage will help with any costs that occur from damages related to the defacement of a company’s intellectual image. For example, any bad press that might occur from a company’s website being hacked and completely changed around would fall into this coverage.
-Extortion Liability Coverage, when data breaches lead to leaking of company sensitive information and extortion, this coverage will ensure that all professional fees needed are insured as well as lawyer fees in some situations.
-Data Breach and Privacy Crisis Coverage, this coverage will pertain to all the random fees that companies do not prepare for in a data breach situation. This includes contact management, credit checking services, notification of affected parties, and investigation into the breach, court and legal fees. If none of the other more specific coverages are purchased, it would be wise to grab this one at a bare minimum. This covers a broad range of areas that will most defiantly take a hit in a data breach.
Once you and your company have determined the coverage you think is needed to handle a data breach, contact a broker to discuss further situations and get a second opinion before going to an insurance company. It is advised to go with an insurance company that you currently do not do business with as they will be more eager to take you on for new business. Remember, the insurance company has to agree to all the terms of what you want covered. Some negotiating may need to be done by your legal team to find the right fit. When it is all said and done you company can rest easy knowing that not if, but when they are breached, you will be better prepared to handle the situation financially without taking a huge hit.