Cyber Liability
What is it?
Frontier Risk's Cyber Liability Insurance shields cannabis businesses against cyber attacks, covering expenses to prevent financial losses and protect your reputation.
Why is it important?
Cybersecurity is the biggest risk cannabis businesses often overlook, yet it is crucial. U.S. data breaches cost an average of $4.45 million, making cybersecurity a top priority for cannabis companies of all sizes. Each year, substantial amounts of personally identifiable information (PII) are stolen, leading to lawsuits and penalties. Moreover, 60% of small businesses facing a cyberattack go out of business within six months, highlighting the severe consequences of inadequate cyber protection. For more comprehensive insight on the importance of cyber liability, read Frontier Risk's CEO James Whitcomb's recent piece on cyber risk titled 'Cyber: The Biggest Cannabis Risk You're Probably Not Thinking About.'
What does it cover?
Data Breach Expenses
Covers costs related to notifying affected parties, credit monitoring services, legal consultations, and public relations efforts after a data breach.
Cyber Extortion Coverage
Provides coverage for expenses incurred during a cyber extortion incident, such as ransomware attacks and demands for payment.
Business Interruption Losses
Covers income losses and additional expenses resulting from disruptions caused by cyber incidents affecting your business operations.
Third-Party Liabilities
Protects against legal liabilities arising from data breaches, privacy violations, and other cyber-related claims from third parties.
Forensic Investigation Costs
Covers expenses associated with conducting investigations to determine the cause and extent of a cyber incident.
Why Frontier Risk?
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Common Questions
Cyber Liability Insurance cannot prevent cyberattacks. However, it provides financial protection against the aftermath of cyber incidents, covering expenses such as legal fees and data restoration.
Cyber Liability Insurance covers legal fees, court costs, and other expenses related to cyber-related claims. In case of a cyber incident resulting in legal action, this insurance offers financial support for hiring legal representation and navigating the legal process associated with cyber-related claims and liabilities.
Cyber Liability Insurance is not only for tech companies. Any business that operates online uses software, or handles sensitive data can benefit from it, including healthcare, cannabis, and manufacturing. It protects against cyber risks like data breaches and online attacks by providing financial coverage for associated losses and liabilities.