What Does Cyber Liability Insurance Cover in New Jersey?

Whether you run an online business, or only log onto your business’s network to check email or crunch the occasional number, unfortunately you’re not immune to attacks by cybercriminals. With so much important and sensitive data stored digitally today, it’s more important than ever for businesses in New Jersey to be equipped with the right protection, which means having cyber liability insurance.

A cyber liability insurance policy can help protect your business from cybercrime and other virtual threats, and even save business owners from bankruptcy. Working with a New Jersey independent insurance agent is a great way to get set up with the right cyber liability policy for your business’s unique needs. But first, here’s a deeper exploration of this critical coverage.

What Is Cyber Liability Insurance?

No matter where you’re based, cyber liability insurance is essentially a contract between a business or individual and an insurance company in which the insurer agrees to cover losses from liabilities and other costs relating to various cyberattacks. Cyber liability insurance has started to be offered with standard business insurance policies in New Jersey due to the growing importance and relevance of this coverage.

Though you may not think your business is extremely technical, with just an Internet connection you’re vulnerable to attacks by cybercriminals. Many business owners unfortunately have learned the hard way how crucial having coverage really is. It’s best to be proactive about protecting your business, which means getting set up with a cyber liability policy ASAP.

What Does Cyber Liability Insurance Cover in New Jersey?

For starters, cyber liability insurance protects businesses that store sensitive information or data electronically, make any kind of transactions through the use of the Internet, and many other scenarios involving computers. Though your policy may vary slightly, there are a handful of core coverages offered by many cyber liability insurance policies in New Jersey.

Your cyber liability policy may comprise several of the following coverages available in New Jersey:

• Loss of income: In the event your business’s operations are suspended or limited due to a data breach or other cyberattack issues and your business suffers a hit in profits because of it, cyber liability coverage can help replace lost revenue.
• Costs due to damaged reputation: When news of cyber breaches leaks to consumers, businesses almost always take a hard hit, at least for a while. Cyber liability insurance may help provide public relations protections for your business to help keep the media as quiet as possible.
• Legal expenses: Should your business end up with a lawsuit if customers sue you after their personal information gets stolen, or even if a bank sues you for having to cancel their customers’ stolen credit card information, coverage can pay for things like attorney, court, and settlement fees.
• Hired professionals: Often businesses have to bring in professional programmers or other computer experts to help them repair the damage to their computer systems, including removing malware and patching up holes in security.

Take note that cyber liability policies are not standard across the board, so depending on which insurance company you go through, you may be offered different coverage options to pick and choose from. Cyber liability policies in New Jersey are generally so flexible you can choose coverage limits and deductible amounts as well.

What Does Cyber Liability Insurance Not Cover in New Jersey?

While cyber liability insurance provides a lot of protection, unfortunately it can’t cover absolutely everything. Though there are some non-covered perils that are pretty common across the spectrum of available policies such as intentional acts, dishonesty, and regulatory/statutory penalties, specific exclusions vary greatly. Since cyber liability policies aren’t standard, neither are their exclusions.

Depending on the types of coverages you and your New Jersey independent insurance agent choose to assemble in your cyber liability package, you’ll end up with a list of exclusions specific to your policy. Your agent will be able to help answer any questions or concerns you have regarding non-covered perils under your cyber liability insurance.

What Are the Benefits of Cyber Liability Insurance in New Jersey?

The main benefit of cyber liability insurance is the sense of security and peace of mind that having coverage brings with it. Since most all businesses these days are vulnerable to cybercrime, having protection is an absolute must.

Here are a handful of benefits to having cyber liability insurance in New Jersey:

• Protection for your business’s sensitive data: The last thing any business owner wants is the passwords to their important accounts to be stolen or for these accounts to be hacked. You may also have other sensitive information such as private medical records that you want to keep safe. Cyber liability coverage can help protect businesses financially in the event of a breach, as well as help pay for hired help to increase virtual security measures.
• Protection for your employee’s personal records: Businesses have to store all kinds of personal information about their employees, including Social Security numbers, bank account information, and more. If your system gets hacked and this information is leaked, it can cause all kinds of trouble and be very expensive to fix. Fortunately, cyber liability coverage can help.
• Protection against liabilities: If sensitive information is stolen and sold to third parties, you’re likely going to end up with a lawsuit on your hands on top of the mess. For example, in the event credit card data gets stolen, you’re legally obligated to report the breach to the affected banks, who may very well sue your business. Cyber liability coverage can help prevent your business from dipping into the red following a lawsuit.
• Protection against delayed operations: Many businesses are simply not functional without their computer systems, while many others depend on computers for at least part of their operations. Without adequate cyber liability coverage, a business could face a long shutdown while awaiting repairs to their system, costing them tons of revenue.

Cyberattacks can cost businesses or individuals in New Jersey hundreds of thousands of dollars in a myriad of different ways, so having cyber liability protection is crucial to keep up with increasing security demands.

How Much Does Cyber Liability Insurance Cost in New Jersey?

Just like any other type of insurance, the cost of your policy will depend on a number of different factors including the size of your business and its annual gross revenue. However, the smaller and less risky your business is to insure, the lower the cost of your premium will be. This basic formula is pretty standard across all types of insurance coverages out there. That being said, it’s sometimes possible to predict a basic range estimate.

For example, smaller companies in New Jersey with relatively basic computer operations might pay less than $1,000 annually, while large tech giants with all kinds of security needs might pay closer to $10,000 per year or even more. Your New Jersey independent insurance agent will be able to give you more specific pricing information for cyber liability policies that work for you.

Why Work with a New Jersey Independent Insurance Agent?

In order to get the protection you need and deserve, you’ll want to work with a trusted expert. And who could be better for the job than a local agent who shares your area code? Independent insurance agents act as your own personal insurance shoppers, offering you tons more options than one-policy companies. With just one call, they’ll hook you up with multiple quotes.

New Jersey independent insurance agents are armed with knowledge on what coverage is needed in your area, and they’ll get you set up with just enough of it — not too little, not too much. They’ll handle all the heavy lifting so you can rest assured you’ll be set up with the right coverage at the right price.

They’re not just there at the beginning either. If disaster strikes, your New Jersey agent will be there to help walk you through the claims process and make sure you’re getting the benefits you're entitled to. Now that’s thinking ahead.