Cyber Liability: Does Cyber Insurance Cover Employee Mistakes or Phishing Attacks?

Cyber threats are a growing concern for businesses of all sizes and across many industries. As technology evolves, so do the tactics used by cybercriminals. With this in mind, it’s crucial for organizations to understand how cyber liability insurance might help protect against financial losses incurred by various incidents, such as employee mistakes and phishing attacks.

Understanding Cyber Liability Coverage

Cyber liability insurance, also known as cyber insurance, is designed to help businesses manage the financial impact of data breaches, cyberattacks and other incidents affecting digital assets or electronic devices. Coverage can typically address a range of risks, potentially helping policyholders recover costs and limit losses resulting from many of the most common types of issues.

Employee Mistakes and Phishing Attacks: Are They Covered?

Employee mistakes, such as accidentally clicking on a malicious link or sending sensitive information to the wrong recipient, are among the leading causes of cyber incidents. Phishing attacks, where employees are tricked into revealing confidential data or credentials, are also a consistent and common cyber threat.

Fortunately, cyber liability insurance policies typically cover these scenarios, including potentially helping to pay for the following:

• Losses from phishing scams, including funds transfer fraud
• Costs related to notifying affected customers and restoring compromised data
• Legal expenses should an employee error lead to a lawsuit
• Credit and fraud monitoring services following a cyber incident

Some insurers may require specific security measures or employee training to be in place for certain types of incidents to be covered. It’s important to review your policy carefully and work with an experienced insurance partner, such as Koziura Szafranski Insurance Agency.

Why Businesses Need Cyber Coverage

Modern businesses must account for a dynamic risk profile, as the world around them may introduce new threats, such as cyber risks. Regardless of how well-trained or diligent your staff may be, even a slight lapse in attention or judgment could help a phishing attack find its target or otherwise incur costly losses. As such, having the right cyber liability insurance can be critical.

If you’re looking for a cyber liability insurance policy or want to review your current coverage, contact us today.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.