Privacy & Network Security Insurance: Cyber-Liability Growing
Storing any type of personal information exposes companies to risk of a privacy or data breach. Regardless of your industry, a data breach is costly, interrupts business, and can harm your reputation. Privacy & Network Security insurance is essential for all firms to protect against this new threat, regardless of size.
In the insurance industry, it is a hugely growing sector. Cyber insurance maintained a double-digit premium volume growth in 2012. It is a $1 billion dollar market, up 25 percent from $800 million in 2011. While it remains a small fraction of the entire property and casualty marketplace, it is breaking even with the $1.4 billion Employee Practices Liability insurance market (EPLI), even though cyber insurance has only been around about half as long.
One study by a cyber-risk management specialist found that personal identification information (PII) was the most common type of exposed data. Private health information was the second most common data breach. The typical loss cost insurers about $200,000.
There are several factors that a cyber-liability policy covers. Typically, a policy covers third party liability coverage for victims of a data breach. In addition, a solid Privacy & Network Security Insurance policy includes first-party liability coverage to cover notification costs, forensics, reputational damage coverage, cyber hostage coverage, fines & penalties.
Regardless of the industry, size of the firm, or business, nearly every operation these days has some root in online operations. As an insurance market, cyber-security is one of the fastest growing markets. As more companies recognize the need for network security and liability protection, the sector will only grow further.
At PL Risk, we provide coverage for all classes of business, including hard-to-place risks. We offer tailored policies depending on the client and industries they serve. Take a look at each of our programs to see how we can help you meet your clients’ needs. Contact us today and one of our staff professional liability specialists will contact you. (855) 403-5982
Source: P&C 360