What is the coverage limit for Cyber and Privacy Insurance?

The choice stating that the coverage limit for Cyber and Privacy Insurance is not less than $1,000,000 per claim is correct because this amount reflects a standard threshold that many organizations aim for to ensure adequate protection against potential data breaches and privacy violations. Given the increasing frequency and severity of cyber incidents, a limit of $1,000,000 provides a level of financial backing sufficient to cover legal fees, customer notifications, public relations campaigns, and any regulatory fines that may arise from such incidents.

Insurers often recommend this coverage level as it aligns with the potential financial risks associated with breaches regarding customer data and privacy. The higher limits in some options, such as $2,000,000, may be more appropriate for larger organizations with extensive data handling, while the lower limits, such as $500,000 or $100,000, may not adequately cover the costs associated with a serious data breach or privacy concern. This is particularly relevant given the complex legal landscape surrounding data privacy today.