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Home > Blog > Cyber Insurance for Business Interruption
FRIDAY, APRIL 27, 2018

Cyber Insurance for Business Interruption

Cyber for Business Interruption
Many cyber insurance policies cover only claims of damages to third parties caused by a cyber attack on your business.

Depending on the nature of the information stored in your business's network (e.g., credit card/bank account numbers, etc.), this type of insurance may be essential in paying the costs resulting from a breach.

However, many businesses are just as concerned about the damage a cyber attack may cause to another party. For example, if a cyber attack on a major product supplier brings its operations to a standstill, what would be the financial consequence to your business? Stated differently, imagine if your company relies on an online retailer to sell product and that retailer is unable to do business for an extended time due to a cyber attack on its network. What would that cost your business?

Fortunately, some insurance companies are modifying their standard cyber insurance policies to include an option to cover such losses. In other cases, insurance companies that offer business interruption insurance coverage also offer an option to include coverage for cyber-related losses.

Even if insurance for this exposure is not readily available or affordable to your business, you may wish to take some time to examine your business's supply chain resilience and consider what alternatives may be available should such an interruption occur.

Cyber Liability Insurance
Posted 1:57 PM

Tags: cyber insurance, cyber liability insurance, data security insurance policy, cyber insurance coverage
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