The Role of Cyber Liability Insurance in Modern Farming

Modern workplaces require modern solutions. In the digital era, industries that may not have previously relied on computers and online technology likely now do so, at least in some capacity. For farmers, this is a common situation, as even these rustic agricultural enterprises likely now must address cyber risks and exposures. Fortunately, a suitable cyber liability insurance policy can address these concerns and position farms to endure data breaches and other cyber incidents.

What Is Cyber Liability Insurance?

Also known as cybersecurity insurance, these policies are a specialized form of coverage crucial for protecting against the financial ramifications of cyber incidents, such as phishing scams and ransomware attacks. Although coverage parameters may vary, payouts can often assist with the following losses and expenses:

• Incident response costs (e.g., investigating the breach and notifying affected parties)

• Noncompliance fines

• Hiring outside help (e.g., IT contractors and public relations firms)

• Business interruption losses

• Legal expenses (e.g., attorney fees, settlements and judgments)

Why Do Farms Need Cyber Liability Coverage?

Although farms may not be the first businesses considered to require cyber liability insurance, modern operations for many of these businesses involve the inherent use of digital solutions and technology. For example, cyber liability insurance could be critical in helping your farm recoup lost revenue if a cyber incident disrupts automated irrigation systems or other digital equipment. As a farmer, you may also have banking information and other sensitive data regarding vendors and customers. Should a cybercriminal gain access to your systems, such information could be exposed and lead to costly expenses and lawsuits.

We’re Here to Help

Contact Don Ramatici Insurance today to learn about cyber liability insurance and how an adequately tailored policy can help secure your farm’s financial interests and future prospects.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.