Cyber Insurance: What’s Covered, What’s Not, and How to Stay Protected

With cyber threats on the rise, businesses are increasingly turning to cybersecurity insurance to protect themselves from cyber incidents’ financial and operational impact. This type of insurance can be essential for organizations of all sizes, offering a safety net in case of data breaches, ransomware attacks, and other cyber risks. Liberty Technology works with businesses to navigate the complexities of cyber insurance, helping them find policies that best meet their needs. Here’s a breakdown of what cyber insurance typically covers, what it doesn’t, and how to stay protected.

What Cyber Security Insurance Covers

1. Data Breach and Recovery Costs
   One of the core components of cybersecurity insurance is coverage for data breaches. This includes the costs of notifying affected customers, conducting forensic investigations, and restoring compromised data. Some policies may even cover credit monitoring services for affected customers, which can be essential in mitigating the long-term impacts of a breach.
2. Business Interruption and Loss of Income
   A cyberattack disrupts business operations and can lead to significant financial losses. Cyber insurance can cover lost income due to operational downtime, ensuring that your business remains financially secure during recovery. This type of coverage is precious for small businesses, which may be more vulnerable to prolonged disruptions.
3. Legal Expenses and Regulatory Fines
   Many cybersecurity insurance providers cover legal expenses and regulatory fines from cyber incidents. Suppose your business is subject to regulatory scrutiny or legal action after a breach. In that case, insurance can help cover the costs of legal representation and potential fines, reducing the financial strain on your organization.
4. Extortion and Ransomware Payments
   Ransomware attacks, which often involve cybercriminals demanding payment in exchange for releasing data, are becoming more common. Cybersecurity insurance for small businesses usually includes extortion coverage, helping you recover ransom payments and manage ransomware incidents. This coverage can be essential for businesses relying on data availability.

What Cyber Security Insurance Does Not Cover

1. Losses Due to Poor Security Practices
   While cybersecurity insurance companies cover various cyber risks, most policies do not cover losses resulting from negligence or inadequate security practices. Your claim may be denied if your business has a history of not updating software, using outdated security protocols, or neglecting employee training. It’s crucial to maintain robust cybersecurity practices to maximize your coverage.
2. Pre-existing or Known Issues
   Cyber insurance policies generally exclude pre-existing vulnerabilities or cyber incidents that were known before the policy’s inception. This means that if your business had a known security issue before purchasing the policy, any losses related to that vulnerability may not be covered. Regular assessments and vulnerability scans are essential to keep potential risks in check.
3. Physical Damage
   Cyber insurance typically covers data and digital assets rather than physical damage to IT infrastructure. For example, if a cyberattack damages your servers or other physical equipment, IT security insurance may not cover the cost of replacement or repair. Ensuring you have additional insurance for physical assets can be essential for comprehensive protection.
4. Future Lost Revenue
   Cyber insurance covers the immediate income lost due to business interruption but does not typically cover future lost revenue caused by reputational damage. For instance, if a data breach leads to a loss of customer trust and reduced future sales, that impact may fall outside the scope of coverage. Focusing on recovery and rebuilding trust with customers can help mitigate this risk.

How Liberty Tech Keeps You Protected

While cybersecurity insurance providers offer essential support, prevention remains the most effective strategy. Here’s how we help keep your business protected:

• Regular Security Assessments
  Our comprehensive cybersecurity assessments are designed to identify vulnerabilities before they become threats. By conducting regular evaluations, we help you mitigate risks and maintain a strong security posture, providing you with peace of mind.
  
  As part of these assessments, we’ll help your business adhere to essential compliance frameworks, ensuring you meet regulatory and fiduciary responsibilities. We work with your team to build an information security program that addresses administrative, technical, and physical control decision-making. Key frameworks we work with include:
  1. NIST (National Institute of Standards and Technology)
  2. HIPAA (Health Insurance Portability and Accountability Act)
  3. SOX (Sarbanes-Oxley Act)
  4. PCI DSS (Payment Card Industry Data Security Standard)

Even if your industry isn’t directly regulated, maintaining these frameworks ensures data protection and builds trust with your clients and employees.

• Incident Response Planning
  We understand that despite the best preventive measures, breaches can still happen. That’s why we focus on ensuring you are prepared. We’ll work with your team to develop a detailed incident response plan that outlines the steps to take in the event of a breach, including communication protocols, roles, responsibilities, and recovery procedures.

• Regular Training and Phishing Simulations
  We’ll conduct ongoing training sessions and phishing simulations to ensure your staff is well-prepared to handle real incidents. These exercises help identify gaps in your security plan and improve overall readiness, so your team knows exactly how to defend against changing cyber threats.

• Advanced Threat Detection
  Our advanced threat detection systems continuously monitor your network for signs of suspicious activity. By identifying potential threats early, we can take proactive measures to reduce the impact of a breach and minimize damage to your business.

• Data Backup and Recovery
  We’ll implement robust data backup and recovery solutions to ensure that your critical data can be quickly restored in the event of a breach. With our solutions, your downtime will be minimized, and your business will maintain continuity, even during the most challenging incidents.

Additional Services to Keep You Secure
At Liberty Technology, we provide a range of services to help you maintain robust security and compliance, including:

• Compliance as a Service: We assist you in adhering to regulatory requirements by offering ongoing compliance management, including audits, policy development, and continuous monitoring to ensure your company remains compliant with industry standards.
• vCSO Advisory Services: Our virtual Chief Security Officer (vCSO) services provide expert guidance on building and maintaining a strong security posture. Our vCSOs will work closely with your team to develop strategies, manage risk, and ensure your business is prepared for any security challenges.
• Penetration Testing: We’ll perform thorough penetration testing on both external and internal environments to identify vulnerabilities and assess the effectiveness of your security measures. Our trusted, accredited teams conduct these tests, ensuring comprehensive, accurate results.

By leveraging these services, Liberty Technology helps you protect your assets, stay compliant, and stay ahead of potential threats.

Ready to Protect Your Business?

At Liberty Technology, we help businesses understand the ins and outs of cybersecurity insurance and find the right coverage to meet their unique needs. With a proactive approach and strong IT security practices, you can minimize risk and ensure you’re fully covered if a cyber incident occurs.

For more information on cyber insurance and cybersecurity solutions, contact Liberty Technology at (770) 874 9869. Our team is here to help you stay secure and confidently navigate the cyber landscape.