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.

You May Also Like
Puttshack Highlights Sensory Inclusion for Autism Acceptance Month

From April 1-30, Puttshack, where guests can enjoy tech-infused mini golf, food and drinks — will donate 20% of each 9-hole mini golf game booked through puttshack.com/kcfundraiser directly to KultureCity to support its mission of

Read More
The Business of Design: DCOTA Spring Market Hosts Industry-Leading Panel

“The Intricacy of Design Across Diversified Industries” event brings together top South Florida leaders on March 12.

Read More
36th Annual Celebration of Authors and Books in Fort Lauderdale

‘Literary Feast’ brings authors to raise funds for the Broward County Library system

Read More
Broward Partnership to Host Annual Salute to Leadership: “Gala in the Glades” Event

The March 29th Event plays an important role in advancing Broward Partnership’s mission to reduce homelessness.

Read More
Other Posts
A Night of Flavor and Philanthropy: Ann Storck Center’s Celebrity Chefs Event Set for May 2, 2025

Local chefs, live performances, and exclusive experiences come together for an unforgettable evening at Seminole Hard Rock.

Read More
Enjoy a Flavorful Comeback at Hereford Grill

Iconic Miami Restaurant Will Open in Spring 2025 Under the Da Silva Hospitality Banner,

Read More
Boys & Girls Club to Celebrate 14th Annual “Claws for Kids” Fundraiser on May 6

The event, held in memory of Judy Kramer at Joe’s Stone Crab, will benefit the Boys & Girls Clubs of Miami-Dade, supporting vital programs and services across its six clubs and sites.

Read More
Mutra Brings a Melting Pot of Flavors to Miami

The new North Miami restaurant by Chef Raz Shabtai brings a bold and innovative take on kosher dining, blending global flavors, fresh farm-to-table ingredients, and deep culinary traditions inspired by his Israeli heritage.

Read More