When cyber attacks like data breaches and hacks occur, they can result in devastating damage. Businesses have to deal with business disruptions, lost revenue and litigation. It is important to remember that no organization is immune to the impact of cyber crime. As a result, cyber liability insurance has become an essential component to any risk management program.
Cyber liability insurance policies are tailored to meet your company’s specific needs and can offer a number of important benefits, including the following:
One of the most important types of insurance you company can buy is Excess Liability Insurance, commonly known as Umbrella Insurance. It protects your business from holes or limits in existing policy coverage as well as from financially draining lawsuits. Just as you carry an umbrella to protect you from a potential downpour, Excess Liability Insurance protects your company from the types of claims that could close your business.
Whether you’re a nonprofit, privately held or a public company, it is likely that your business can benefit from a D&O (Directors and Officers) Policy. In today’s business climate of corporate transparency and accountability, an organization’s officers and directors face a myriad of employment related exposures.
Assume that the organization has only two alternatives for handling its risk: buy insurance policies or apply risk management treatments except insurance.
Payments under insurance policies for losses are contractually guaranteed, but at a cost of premium payments, application of deductibles or retentions, application of exclusions and restrictions, and the possibility, remote as it is, that the insurance company will become insolvent and unable to pay for losses.
Insurance is not a transfer, in spite of several risk management theorists’ proclamation otherwise.
Insurance is a financing technique; a type of loan in which the premium is the interest and the limit of coverage the amount borrowed, but only if a covered loss occurs.
The contingent nature of the insurance contract does not require repayment of the principal borrowed (unlike an ordinary loan) as the “interest” of the fortunate many that do not have a loss repays it on behalf of the unfortunate ones who do.
Principles of Risk Management Course Certified Risk Managers (CRM) Program
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