Question of the Week: Why should companies add cyber liability in 2021, what does cyber liability cover, and what happens in the event of a data breach or cyber-attack?

Cyber Liability is becoming one of the most crucial components of any business’ insurance portfolio, especially as companies increase their dependencies on digital technologies. An uptick in remote work and companies adopting a larger online presence has caused an increase in data breaches and cyber ransom attacks, where companies must pay to regain access to their systems and files. The specifics of a data breach or cyber-attack vary depending on the industry.      The general consequences of a data breach include expenses from notification costs, loss of reputation, statutory fines/penalties, and more. Meanwhile, the general ramifications of a cyber-attack include irreparable damage to businesses’ systems and servers, loss of crucial information, large ransom costs, in addition to the expenses associated with a data breach. Thus, cyber policies provide coverage for a wide array of events that can occur and help provide financial support for associated fallouts. 

Companies should implement cyber insurance and maintain diligent internal cyber security processes. firewalls, antivirus and off-site data backup are some starting points in ensuring basic protection. Depending on the industry and type of information, specific processes must also be put into place to determine how information is handled and who has access to areas where information is held. Most importantly, companies should implement training procedures to ensure that remote employees understand the importance of maintaining cyber hygiene. 

The majority of data breaches originate due to an employee falling for a phishing scam or clicking an unsecured link in an email. Therefore, training and internal cyber risk management is just as crucial as maintaining adequate coverage. With this in mind, companies must note that most cyber insurance companies require these steps be in place to issue coverage or respond to a claim. As we move into the digital age, it’s imperative for businesses.

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Drew Limsky

Drew Limsky



Drew Limsky joined Lifestyle Media Group in August 2020 as Editor-in-Chief of South Florida Business & Wealth. His first issue of SFBW, October 2020, heralded a reimagined structure, with new content categories and a slew of fresh visual themes. “As sort of a cross between Forbes and Robb Report, with a dash of GQ and Vogue,” Limsky says, “SFBW reflects South Florida’s increasingly sophisticated and dynamic business and cultural landscape.”

Limsky, an avid traveler, swimmer and film buff who holds a law degree and Ph.D. from New York University, likes to say, “I’m a doctor, but I can’t operate—except on your brand.” He wrote his dissertation on the nonfiction work of Joan Didion. Prior to that, Limsky received his B.A. in English, summa cum laude, from Emory University and earned his M.A. in literature at American University in connection with a Masters Scholar Award fellowship.

Limsky came to SFBW at the apex of a storied career in journalism and publishing that includes six previous lead editorial roles, including for some of the world’s best-known brands. He served as global editor-in-chief of Lexus magazine, founding editor-in-chief of custom lifestyle magazines for Cadillac and Holland America Line, and was the founding editor-in-chief of Modern Luxury Interiors South Florida. He also was the executive editor for B2B magazines for Acura and Honda Financial Services, and he served as travel editor for Conde Nast. Magazines under Limsky’s editorship have garnered more than 75 industry awards.

He has also written for many of the country’s top newspapers and magazines, including The New York Times, Washington Post, Los Angeles Times, Miami Herald, Boston Globe, USA Today, Worth, Robb Report, Afar, Time Out New York, National Geographic Traveler, Men’s Journal, Ritz-Carlton, Elite Traveler, Florida Design, Metropolis and Architectural Digest Mexico. His other clients have included Four Seasons, Acqualina Resort & Residences, Yahoo!, American Airlines, Wynn, Douglas Elliman and Corcoran. As an adjunct assistant professor, Limsky has taught journalism, film and creative writing at the City University of New York, Pace University, American University and other colleges.