Why Banks Need Robust Cyber Liability Insurance
Banks and other financial institutions rely on insurance policies to provide protections against unforeseen circumstances. Policies like professional liability and crime insurance are common because they are crucial. One policy that can be forgotten about or remain outdated for banks is cyber liability. Learn why robust cyber liability insurance for banks is important.
Picking Up the Pieces
Comprehensive cyber liability insurance protects banks against two main forms of losses:
- Losses of bank assets: Loss of property, direct loss of money, or property damage.
- Lawsuits: Allegations of negligence by a customer or third party.
Bank assets can be lost through hackers stealing money or a fraudulent transfer of funds through computers. Your bank could be liable for negligence if a hacker gains access to a customer’s private information.
Protection You Need
While property insurance typically covers computer hardware related to a loss of assets, specific cyber liability coverage is needed in cases of faulty computer security causing losses to a customer or another type of third party. The main function of cyber liability is helping you respond to claims that you were negligent in protecting the privacy of your customers.
As fraud prevention improves, hackers get smarter. Make sure your cyber liability policy is up to date so that you are protected in the event of a cyber security failure.