Experts say that one cyberattack occurs every 39 seconds. Estimates indicate that the average cost of a data breach arising from an attack (in the United States) is over $9.3 million. These statistics make it clear that Clarinda, IA, business owners who store a lot of personal and financial information on an IT system would do well to consider not just cyber insurance but also a cyber umbrella policy.
What is Cyber Umbrella Insurance?
First-party cyber insurance covers your expenses after an attack. These can include the cost of paying a ransom, repairing your IT system, and assessing how future attacks can be prevented. Third-party cyber insurance covers legal expenses, judgments, and settlements related to a cyber attack.
Cyber umbrella insurance isn’t a standalone policy; rather, it increases the liability limits of your underlying cyber insurance policy. It kicks in when you reach the limits of your regular policy, so you don’t have to pay bills out of pocket. For example, if your cyber insurance policy covers ransom payments up to $1 million, but you need to pay a $2 million ransom, cyber umbrella insurance coverage will provide the extra money.
Bear in mind, however, that your umbrella policy can’t make up for lacks in your underlying policy. For example, if you only buy first-party cyber insurance coverage, your cyber umbrella insurance policy won’t cover perils that are only covered by third-party cyber insurance coverage.
Need More Information? Call Sump Insurance in Clarinda, IA
Sump Insurance is a full-service insurance agency in Clarinda, IA. We take pride in helping business owners get insurance coverage that provides optimum protection for their businesses and business assets. Call us to find out more about cyber umbrella insurance or to get policy quotes.
