The Importance of Cyber Liability Insurance in Today’s Digital Landscape

The COVID pandemic ensures 2020 won’t soon be forgotten, deserving a chapter of its own in history books. The onset of a global pandemic coincided with some major shifts in nearly every industry, from commerce to education and everything in between.

With changes coming at a breakneck pace, digital security protocols weren’t always implemented in time, leaving many businesses vulnerable to attacks. Hacks and cybersecurity breaches made headlines alongside news of the spreading virus – and elevated the importance of cyber liability insurance to new heights.

Some positive pivots were made too, as schools, medical practices, and workplaces found ways to function from afar. Distance learning, telemedicine, and teleworking became the norm, and while convenient, these practices required Americans to spend more time online. This increased exposure for the telecommunications industry, and essentially opened the door for ransomware attacks and dangerous data breaches. Cyber liability insurers worked hard to provide the protection needed – and continue to defend telecom companies today.

What is Cyber Liability Insurance?

Cyber liability insurance protects your business in the event of data breaches, ransomware attacks, and other cyber incidents. It provides a more targeted approach than general liability insurance (umbrella insurance), with policies specifically created to defend against incidents in the digital space.

While some insurance carriers offer cyber insurance as an add-on to an existing policy, Telcom Insurance Group provides it as a policy all on its own. Because we know the industry inside and out, we know that there is no limit to the amount of information stored, or exchanged, digitally – and we understand the challenges that result. Our unique perspective allows Telcom Insurance Group to offer comprehensive cyber insurance that covers you from all sides and meets your specific needs.

What Does Cyber Liability Insurance Cover?

Telcom Insurance Group was the very first to offer cyber liability insurance, taking it a step further to include helpful resources that help customers manage their cyber risk and prevent business interruptions. Cyber liability coverage most often comes in the form of first-party or liability (third-party) policies. Telcom Insurance Group provides cyber risk management in both forms, which includes the following:

  • Security breach liability
  • Security breach expense
  • Extortion threats
  • Replacement or restoration of electronic data
  • Telecommunications errors and omissions
  • Regulatory proceedings
  • Public relations expense
  • Business income and extra expense
  • Social engineering fraud

Cyber Risk Management Resources 

In addition to the coverage provided under the policy, Telcom Insurance Group takes risk management to the next level by providing customers with a portal of resources, each designed to help mitigate the risk of a cyber attack. Resources include:

  • Breach calculator
  • Incident Roadmap
  • Sample incident response plan
  • Information Center
  • Breach Coach accessibility

Role of Cyber Liability Insurance in Telecommunications

A cyber attack can be disastrous for a business of any size, causing serious damage to both finances and reputation. According to the Rural Broadband Association, “70% of cyber attacks target small businesses and 61% of all businesses have reported at least one cyberattack during the previous year.”

As the technological landscape continues to evolve, it has become nearly impossible to keep pace with digital security, especially post-pandemic. For instance, the inability to work in a traditional office setting stimulated a workplace infrastructure remodel – and brought many employees’ 9-to-5 to the digital space. While employers and their staffs adjusted to a new way of conducting business, the remote working environment was faced with ever-changing (and increasingly advanced) cybersecurity threats.

Reliance on home-based connectivity, online collaboration services, and overall solitary responsibility of the employee have contributed to a greater risk of ransomware attacks and phishing scams. In fact, shortly after the pandemic, phishing attacks used coronavirus references as bait to lure employees into clicking on infected links. In the areas of least resistance, not only is the employee’s personal information at risk, but the network and the business itself.

Choosing Telcom Insurance Group for Cybersecurity

As industries continue to develop and deepen their footprint in the digital landscape, the threat of a cyber attack grows as well. At Telcom Insurance Group, we believe in adapting to our surroundings and providing a stable ground for our telecommunications customers to stand on.

Security in cyberspace is about more than risk assessments – it is about having the necessary tools and policies to recognize, prepare, and mitigate cybersecurity risks at every stage of the risk management process. From start to finish, we’re here to help. To learn more or to add cyber insurance coverage, contact Telcom Insurance Group today!