What Does Cyber Insurance Cover?
A cyber insurance policy is your company’s best defense against financial loss due to crimes associated with cyber-related security breaches. And while you already know that, you might not know exactly what is covered under a cyber insurance policy. Currently, there are no underwriting standards for cyber insurance, so the exact coverage you receive can vary based on the insurance provider and based on the coverage options you choose for your business.
While we can’t necessarily speak for other insurance providers, Roanoke offers tiered cyber insurance coverage that allows you to choose which benefits make sense for your industry and your specific business. We encourage our clients to consider the seven main aspects of coverage that apply to logistics and transportation companies specifically:
- Data Loss Coverage – This covers financial loss associated with recreating data that was corrupted, stolen, or lost.
- Notification Coverage – This covers the effort involved in notifying parties of the loss of their data as defined by state-specific laws.
- Regulatory Investigation Expense – This covers the costs associated with any regulatory agency that is investigating a data breach within your company.
- Public Relations – This covers the costs associated with damage control and marketing costs surrounding the cybersecurity attack.
- Business Interruption – This covers a loss to revenues due to an interruption to normal business operations that is caused by data breach, hacking, or fraud.
- Content Liability – This covers any intellectual property claims or slander associated with cybercrime
- Data Lost in Transit – This covers logistics providers who are responsible for transporting computer or data storage devices with data on them.
While historically, the insurance industry has been very cautious about creating new products for new exposures that pop up over the years, it became clear there was a need for cyber insurance as more and more companies fell victim to cyber-attacks. Uninsured companies can easily find themselves spending upwards of $100,000 to address and resolve cybersecurity problems.
A practical example of this is when recently, a logistics company’s CEO sent the CFO instructions to wire $25,000 to an account in Russia, which was thought to be one of their trusted vendors. The wired money was sent to the account before the company realized they had been hacked and in fact, the CEO did not order the money transfer. Both banks involved refused to accept liability. The company lost the money that had been wired to the fraudulent recipient, and the hacker got away with the crime.
It’s important for companies within the transportation industry to understand that electronic data breach and other cyber crimes are not covered under traditional business package policies and need to be covered specifically under a cyber insurance policy. By customizing cyber insurance coverage, companies can protect themselves and their companies against:
- Money laundering
- Data leakage
- And more
Roanoke is ready and available to help you customize cyber insurance coverage to meet the unique needs of your logistics company. We encourage you to contact us at 1-800-ROANOKE or complete the contact form on our website to speak with a representative about the best options for your company.
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