Cyber Liability: An Essential in Your Logistics Insurance Package
When you’re shopping the transit cargo insurance market, you’re probably focused on solutions such as general liability, marine cargo policies, motor truck cargo and other indemnity products specific to your company’s types of operations. The Ponemon Institute’s 2017 Cost of Data Breach Study revealed that expenses related to compromised information security average $3.62 million for each incident. Without cyber liability protection, a loss of that magnitude could jeopardize your business’ future.
What Does Cyber Liability Insurance Cover?
Data security is critical for any venture, but it’s especially salient for logistics firms considering that their information can pass through multiple computers, servers and mobile devices. While evaluating your options in the transit cargo insurance market, you want to obtain an indemnity policy that answers these and other risks related to your information security infrastructure. Whatever solution you select, be sure that it includes coverage for:
- Costs of data recovery
- Expenses incurred while notifying parties affected by a data breach
- Regulatory investigation expenses
- Fines and legal fees
- Expenses from public relations campaigns
- Business interruption
Your data security measures should include an effective internet use policy for your employees, robust and comprehensive in-house security practices and careful partnerships with and vetting of third-party vendors. Moreover, your insurance agency should assess your logistics firm’s needs and propose a full coverage cyber liability solution that’s crafted to address your unique risk picture.