What is Cyber Insurance?

Cyber insurance policies are specialized policies designed for the modern digital age. This form of insurance is specifically designed to help shield Massachusetts businesses from covered risks associated with online threats and data breaches.

Cyber insurance policies are relatively new to the insurance market.  Businesses are quickly adopting these policies as the risks that come with using digital data increase.

What Massachusetts Businesses Need a Cyber Policy?

Because almost every business uses a computer and the internet in some capacity, cyber coverage is something that all Massachusetts businesses should carry. Some examples of businesses that may benefit from having a policy include:

  • Medical practices, which have sensitive medical data that’s protected by law
  • Financial institutions, which have people’s bank account and other financial data
  • Retailers, which process customer’s credit card numbers
  • Restaurants, which accept online reservations that contain personal information

This insurance is for any business that could lose data in a breach or suffer an online attack.

Cyber Insurance Massachusetts

What Protections Does Cyber Liability Insurance Offer?

Because cyber liability insurance is still a relatively new policy type, there isn’t a standardized list of protections that all policies offer.  Instead, there are many items that policies may or may not cover. Some of the items include:

  • Lost revenue caused by a halt or slowing of operations
  • Lost revenue caused by a damaged reputation
  • Reparations that must be paid to affected clients or customers
  • Expenses associated with providing complimentary credit monitoring
  • Expenses associated with hiring programmers to address any security issue

To find out what specific protections a particular policy will provide in the event of a covered incident, business owners should contact one of our Business Lines agents to review a cyber liability policy.

Are Ransomware Attacks Covered by Cyber Liability Insurance Policies?

Ransomware attacks are online attacks that seize a business’ data and hold the data hostage for a ransom payment. These attacks are becoming increasingly common, and they’re a threat that many businesses need to take seriously.

At this point in time, some cyber liability insurance policies cover ransomware attacks but not all do. Businesses that want to protect themselves against this specific risk can work with a knowledgeable agent to find a policy that does provide coverage for ransomware attacks.

Cyber Insurance Massachusetts

Does Cyber Liability Insurance Duplicate Commercial Property Insurance Coverages?

Even though most Commercial Property insurance policies provide at least some coverage for computers and electronic devices, there’s usually no coverage overlap between Cyber Liability, Business Owner’s and Commercial Package policies.

Cyber Liability policies are generally designed to protect data that’s stored on hardware, while Commercial Property policies tend to protect the hardware. In other words, a Cyber Liability policy may safeguard files on a computer while a Commercial Property policy might cover the computer itself.

To protect both hardware and data, businesses will need a Cyber Liability policy as well as a Commercial Property Policy. 

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How Can Massachusetts Businesses Get Cyber Insurance?

Since Cyber policies are new and non-standardized, it’s especially important to review a policy’s terms and conditions carefully before purchasing the policy.  For help reviewing and comparing policies, business owners should contact one of our agent today!   

Receive a Free Cyber Insurance Quote!