Cyber Insurance

When a data breach, ransomware attack, or social engineering fraud hits your business, cyber insurance funds the response: forensics, notification, legal defense, and lost income.

Cyber Insurance

Cyber insurance protects your business when a digital incident disrupts your operations or exposes sensitive data. Coverage spans first-party losses (ransomware payments, business interruption, data restoration) and third-party liability for privacy claims, regulatory fines, and notification costs. Any business that stores customer data, processes payments online, or relies on networked systems has cyber exposure that standard property and liability policies won’t address.

Cyber is a specialty practice at ZRM, not a sideline. When our team reviews a cyber program, we look at how the policy defines a covered event, whether social engineering and funds transfer fraud are included, and how business interruption is calculated. We also check whether your coverage keeps pace with your data volume and vendor ecosystem. Request a program review and we’ll evaluate your current coverage against your actual risk profile.

Why is Cyber Insurance Important?

In a digital age, cyberattacks are a very real threat to every business, big or small. The reality is that the majority of cyberattacks happen to small and medium-sized organizations who may not have the same level of security infrastructure and digital safeguards in place as larger companies.

With the shift to remote working, computer systems have become even more vulnerable as sensitive information moves outside the office walls. And without cyber liability insurance, the catastrophic impact of a cyber attack on your bottom line can be devastating.

At our brokerage, we understand that you need to protect your business from these risks. That’s why we specialize in cyber liability insurance, to help you close coverage gaps, reduce your total cost of risk, and keep your peace of mind.

Don’t wait for a cyber attack to happen, take action now and protect your business from these threats. With our expert guidance and the right insurance coverage in place, you can be confident that your organization is ready to face any cyber threat and come out stronger.

Cyber Liability Insurance FAQ

DOES MY BUSINESS NEED CYBER INSURANCE?

The short answer is: yes.

Every organization, from startups through fortune 100 companies, that store or transact data on a network are exposed to fast-moving cyber security risk. To put this into context, data privacy attacks happen around the clock in the U.S. and carry a legally required response and notification practice. The cost of this mandated response can be substantial and that is before you take into account the cost of a public backlash due to data breach.

Organizations that skip securing cyber insurance will be forced to independently fund state and federal fines, penalties, digital forensic investigations, breach notification costs and ensuing class action or third party lawsuits on top of public relations expenses.

Cyber insurance covers a broad array of first-party and post-breach expenses:

  • Privacy attorney legal costs
  • IT forensic investigation services
  • Compliance with state notification laws
  • Credit monitoring for breached individuals
  • Hiring a PR firm to manage the crisis
  • Covering regulatory fines
  • Class action lawsuits resulting from the breach

ZRM is a modern brokerage with extensive cyber liability experience. We have the knowledge and comprehension to understand the risks facing your systems, data, technology stack, and future growth plans. As the cyber liability field continues to evolve, we will help you make informed decisions that retain peace of mind.

Some best practices to prevent cyber attacks include regularly updating software and security systems, implementing strong passwords, training employees on cybersecurity best practices, and regularly backing up data. Additionally, businesses should consider hiring a cybersecurity expert or consulting with a cybersecurity firm to assess vulnerabilities and develop a comprehensive security plan.

The cost of cyber liability insurance will depend on the specific coverage, the size of your business, and the level of risk. Premiums can range from a few hundred dollars to tens of thousands of dollars per year.

Speaking with an advisor from ZRM Brokerage can help you evaluate your cyber exposure and secure cost-efficient protection for your exposures and client data.

Cyberterrorism

  • An insured’s employee noticed that the corporate Twitter feed was broadcasting pro-ISIS propaganda.
  • Following a call to the insurance carrier’s hotline and the involvement of external forensic teams, they identified that the corporate website, email system and Twitter feed had been compromised by an ISIS-affiliate or web supporter.
  • The method of intrusion was closed down by the insured’s internal teams, but two weeks later similar postings appeared.
  • The external forensic team then conducted a full system analysis, restoring the security of the insured.
  • Over $80K of forensic costs were incurred by insurers. The carrier continued to provide breach response support post-incident to ensure the insured experienced no disruption to their operations.

Ransomware

  • The insured’s employee clicked on a malicious link which resulted in the downloading of a cryptolocker ransomware, malware that encrypts the system it attacks and demands payment to release.
  • Assisted by the carrier and forensic teams, the insured’s internal team was able to restore elements
    of the compromised data, but had to pay over $5,000 in extortion payments using a cryptocurrency.

Compromised Employee Information

  • An insured became aware that a number of its employees were being subject to being subject to tax fraud; tax refunds had already had already
    been secured in their names.
  • Supported by the carrier and external forensic teams, the insured confirmed their systems were secure and the cause was likely an external provider.
  • The carrier provided notification advice and credit monitoring services to the affected employees, with each receiving Experian’s credit protection product for one year.

Trademark

  • The insured received a lawsuit regarding a trading name they used, indicating it was a violation of a third party’s trademark.
  • Cover was granted under media liability coverage and the carrier were instructed to defend the litigation, which was settled prior to court.
  • The program covered all costs after the retention.

TCPA Claims

  • An insured received class actions in two states for breaches of the federal TCPA law relating to a fax advertising campaign.
  • Their policy immediately responded to these allegations, which due to statutory penalties totaled over $754,000 in exposure to the insured.
  • The defense counsel was able to reduce the settlement of one of the class actions from $350,000 to $5,500, and actively defend the second.
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