Cyber Liability Insurance

In today’s digital world, the threat of cyber-attacks and data breaches is ever-present. Protecting your business from these risks is not just an option—it's a necessity. Titan Risk specializes in providing comprehensive cyber insurance solutions tailored to the unique needs of businesses across all industries. Whether you handle sensitive customer data, rely on digital systems for daily operations, or face regulatory requirements, our cyber insurance policies offer the protection you need against the financial and reputational damage that can result from a cyber incident.

Our team of experts understands the rapidly evolving landscape of cyber threats and is committed to helping you secure the right coverage. With Titan Risk, you can operate with confidence, knowing that your business is protected against the unexpected, from data breaches and cyber extortion to network interruptions and beyond.

Highlights

With a commitment to providing comprehensive coverage and unparalleled support, Titan Risk ensures that you are not only protected but also well-prepared to respond swiftly and effectively to any cyber incident. Here are some highlights of coverage offerings:

  • Broad Definitions of “Insured”- Coverage extends to a wide range of parties, including employees, independent contractors, vendors, and volunteers for most business classes, ensuring broad protection against cyber risks.
  • Defense Costs Outside the Limit- Legal defense costs are covered outside the primary policy limit, ensuring your policy limits remain intact for settlements, judgments, or regulatory fines.
  • Comprehensive First and Third-Party Coverage- Offers extensive coverage for both first-party losses (like data recovery, business interruption, and cyber extortion) and third-party liabilities (such as network security and privacy liability), addressing a full spectrum of cyber risks.
  • Crisis Management and Public Relations Support- Coverage includes expenses for crisis management and public relations efforts to manage reputational damage following a cyber event, helping you recover quickly and maintain trust.
  • Media Liability Protection- Offers protection for electronic media risks, including copyright infringement, defamation, and privacy violations, safeguarding your digital content and online presence.
  • Coverage from “A” Rated Insurance Companies- Our policies are underwritten by top-rated, financially stable insurance companies, providing you with the assurance of reliable and secure coverage.
  • Worldwide Coverage Availability- Access to Cyber Liability Insurance across multiple jurisdictions, ensuring global protection for your business operations, no matter where you operate.

Learn More about Cyber Liability Insurance

Cyber liability insurance is a specialized form of insurance designed to protect your business from the financial and reputational damage caused by cyber incidents. From data breaches to ransomware attacks, cyber threats can disrupt your operations, lead to significant financial losses, and harm your brand. Titan Risk's Cyber Liability Insurance ensures you're covered, no matter the cyber threat.

What is cyber liability insurance?

Cyber liability insurance is a specialized type of insurance designed to protect businesses from the financial and reputational risks associated with cyberattacks and data breaches. As businesses increasingly rely on digital operations and store sensitive information online, they become more vulnerable to cyber threats such as hacking, ransomware, phishing attacks, and unauthorized access to confidential data.

Does cyber liability coverage only cover online attacks?

While Cyber Liability Insurance is the insurance industry-standard term, it doesn’t fully communicate the breadth of protection the coverage provides. The name leads to misconceptions about the policy's scope, causing businesses to undervalue or misunderstand its benefits. 

Given the comprehensive nature of the coverage, Data Breach Insurance probably better captures the full scope of what the coverage offers. 

It provides comprehensive protection against a wide range of risks associated with data breaches and other cyber incidents.

What is first-party coverage?

  • Business interruption covers the loss of revenue due to a cyberattack that disrupts your operations.
  • Cyber extortion payments involve the costs of paying a ransom to restore access to your data and systems.
  • Notification expenses include the costs associated with informing customers, vendors, and other stakeholders affected by the cybercrime.
  • Forensic investigation involves hiring experts to determine the cause and extent of the attack.
  • Crisis management entails covering the expenses of hiring a public relations team to manage reputational damage after a cyberattack.
  • Protection services include the costs of credit monitoring and other protective measures for affected stakeholders.
  • Data and asset recovery reimburses the costs of restoring damaged or lost data.

What is third-party coverage?

  • Legal defense and settlements cover legal fees, court costs, and any settlements or judgments if your business is sued due to a cyber incident that impacts third parties, including customers or business partners.
  • Regulatory fines and penalties cover the costs of fines and penalties imposed by regulatory authorities if your business does not comply with data protection laws and regulations following a cyber incident.
  • Network security liability covers claims made against your business for failing to prevent a cyberattack that results in a data breach or the spread of malware to third-party systems.

I have cyber coverage on my businessowners policy, do I still need a separate policy?

Whether you need a separate cyber liability insurance policy, in addition to the cyber coverage provided by your businessowners policy (BOP), depends on several factors, including the scope of coverage offered by your BOP, the specific risks your business faces, and the potential impact of a cyber incident on your operations. Things to consider: 

  • Coverage limits under your BOP’s cyber coverage are often lower and may not be adequate for significant cyber incidents.
  • The scope of coverage in a BOP’s cyber protection typically addresses only basic risks and might not extend to comprehensive protections like regulatory fines, legal defense, or cyber extortion.
  • If your business deals with sensitive data or operates in a high-risk industry, the basic coverage in a BOP may fall short. Businesses with higher cyber risks often benefit from a standalone policy.
  • The potential financial and operational impact of a cyber incident should be carefully considered. If the consequences could be severe, the limited coverage of a BOP might leave your business vulnerable, whereas a dedicated cyber policy provides more comprehensive protection.

What limits should I carry for cyber liability insurance?

Determining the appropriate limits for your cyber liability insurance depends on several factors unique to your business. Here are key considerations to help you decide on the right limits:

  • The amount of data you handle, and your revenue size can significantly affect the potential costs of a cyber incident. Larger businesses often need higher coverage limits due to handling more data and generating more revenue, while small to medium-sized businesses might be okay with lower coverage limits. 
  • Industry-specific threats vary, with sectors like healthcare, finance, and retail being more frequent targets of cybercriminals, often facing higher regulatory fines and penalties. Businesses in high-risk industries may need higher coverage limits.
  • The sensitivity and volume of the data you manage, such as personal identifiable information, financial records, or health data, can increase the potential costs of a breach.
  • Compliance requirements in certain industries, such as those governed by HIPAA, involve strict data protection regulations, where breaches can result in substantial fines.
  • The potential impact on your business operations, including interruptions caused by a cyber incident, should be a key consideration when determining your coverage needs.

What are the most common causes of a data breach?

Social Engineering

Social engineering involves manipulating individuals into performing actions or divulging confidential information. Phishing is a common form, but social engineering can also include tactics like pretexting, baiting, or tailgating.

Social engineering attacks often bypass technical security measures by exploiting human psychology, leading to unauthorized access and data breaches.

Phishing Attacks

Phishing is a form of social engineering where attackers trick individuals into providing sensitive information, such as login credentials, by pretending to be a trusted entity (e.g., a bank, colleague, or service provider). These attacks are typically carried out through deceptive emails, messages, or websites.

Once attackers obtain login details, they can gain unauthorized access to systems, leading to data breaches.

Weak or Stolen Passwords

Many breaches occur due to weak, easily guessable passwords, or when users reuse passwords across multiple accounts. Attackers use methods like brute force attacks to crack weak passwords or use stolen credentials found in previous breaches.

Weak or stolen passwords allow attackers to bypass security controls and access sensitive data or systems.

Malware and Ransomware

Malware is malicious software designed to infiltrate systems, steal data, or cause damage. Ransomware, a specific type of malware, encrypts a victim’s data and demands a ransom for its release.

Malware can be used to steal sensitive information directly or to facilitate further attacks. Ransomware can lead to significant business interruption and data loss.

Insider Threats

Insider threats involve employees, contractors, or other individuals with authorized access to systems who intentionally or unintentionally cause a data breach. This can include disgruntled employees, negligent handling of data, or employees falling victim to phishing attacks.

Insiders already have access to sensitive data, so breaches caused by insiders can be particularly damaging and hard to detect.

Unpatched Software and Vulnerabilities

Software vulnerabilities are flaws or weaknesses in software code that attackers can exploit to gain unauthorized access to systems or data. Failing to apply patches or updates that fix these vulnerabilities leaves systems exposed to attacks.

Exploiting vulnerabilities in unpatched software can allow attackers to access sensitive data or take control of entire systems.

Third-Party Vendor Risks

Many businesses and non-profits rely on third-party vendors for various services, such as cloud storage, payment processing, or IT support. If these vendors have weak security practices, they can be a vector for data breaches.

A breach at a third-party vendor can lead to the exposure of sensitive data, even if the organization itself has strong security measures.

Physical Security Breaches

Physical breaches involve the theft or loss of devices containing sensitive data (e.g., laptops, smartphones, USB drives) or unauthorized access to secure areas where sensitive data is stored.

Physical breaches can result in the loss or theft of sensitive information that is not encrypted or otherwise secured.

Human Error

Human error is a leading cause of data breaches, including misconfigured systems, accidental sharing of sensitive information, or sending data to the wrong recipient.

Even simple mistakes can lead to significant data breaches, especially if sensitive information is exposed or shared improperly.

Outdated or Unsupported Technology

Using outdated or unsupported technology, such as operating systems or software that no longer receive security updates, can leave systems vulnerable to attacks.

Without security patches and updates, outdated technology can be easily exploited by attackers to gain access to sensitive data.

Outside of cyber liability, what insurance products can I buy from Titan Risk?

Titan Risk offers a comprehensive range of commercial Property and Casualty (P&C) insurance products designed to protect your business from a variety of risks. Whether you need coverage for your property, liability protection, or specialized policies tailored to your industry, Titan Risk has you covered. 

Here’s a list of the key P&C insurance products you can purchase from Titan Risk:

  • General Liability Insurance
  • Commercial Property Insurance
  • Commercial Auto Insurance
  • Workers' Compensation Insurance
  • Professional Liability Insurance (Errors & Omissions)
  • Directors and Officers (D&O) Insurance
  • Employment Practices Liability Insurance (EPLI)
  • Cyber Liability Insurance
  • Commercial Umbrella Insurance
  • Inland Marine Insurance
  • Business Interruption Insurance
  • Crime Insurance
  • Product Liability Insurance
  • Reps and Warranties Insurance
  • Tenant Legal Liability Insurance

How Do I obtain cyber liability insurance from Titan Risk?