What is Cyber Liability Insurance?
Cyber Liability, in our opinion, is one of the most misunderstood insurance coverages that an
organization might purchase. We believe it’s misunderstood primarily because unlike many other
insurance coverages, it has components designed to protect an organization from things that might
happen to it, as well as protect the organization for liability that they have to others. It’s also
misunderstood because often organizations feel they have little risk.
Ultimately, to understand Cyber Liability, it is important to understand that this coverage part is
designed to cover claims that happen through use of the internet, breach of computers and computer
networks, and theft/fraud that can occur because of criminals use of technology.
When thinking about Cyber Liability, one should consider two primary concerns; both can be addressed
by a good Cyber Liability Policy. The first concern is an organizations responsibility to others; especially
its customers and employees. Because many businesses sell their products and services through the use
of technology, there is a great risk of loss. If a business collects Personally Identifiable Information,
credit and other payment card information, or email addresses of others, they have a cyber liability
exposure. Criminals can breach their system and exploit these. Federal law now has requirements for
businesses in the event of such breaches that can result in enormous financial loss. Plus, businesses can
be sued by those who were harmed by such a breach. All of this is covered by the typical Cyber Liability
policy.
In addition, another concern that all businesses face relates to loss from within. Ransomware,
fraudulent requests for wire transfers, and similar exposures face every business today. They can result
in huge losses incurred. This risk is also covered by a good Cyber Liability policy.
Why is Cyber Liability Insurance Important?
There are three significant reasons this coverage is important.
- First, like most insurance products that a company may purchase, typically no other coverage is
available or exists outside of a Cyber Liability policy. - Next, every business is at risk. It’s virtually impossible today for a business not to have some
exposure to criminals. The use of computers and technology today is effectively mandatory for
business. - Also, the potential for significant loss is great. The cost alone to notify parties who may have
been impacted by a breach could be enormous. Plus, most businesses don’t properly evaluate
the cost of employees time that would be required after such a breach. Did you know that a
single hack can cost a small to medium sized business an average of $36,000. Did you know that
roughly 60% close as a result? - Finally, multiple laws exist that require businesses to do specific things in the event of a loss in
this area. All 50 states have security breach notification laws that require businesses who have
suffered a breach which might expose the personal information of others to notify all who may
have been affected. Some laws also require credit counseling be offered and other such costly
assistance be provided; all at the expense of the breached business.
- First, like most insurance products that a company may purchase, typically no other coverage is
Here are some of the common types of coverage available in Cyber Liability Policies:
- Security Breach Expense – covers required costs of investigating breaches, notification
expenses as well as your costs for a public relations firm, call centers and credit
monitoring services; - Security Breach Liability – covers your liability to others arising out of the breach
- Replacement/Restoration of Electronic Data – covers data or programs damaged by
viruses or denial of service; - Web Site Publishing Liability – covers errors, misstatements or misleading statements
that infringe copyright, trademark, or trade dress; defame a person or organization; or
violate a person’s right of privacy; - Programming Errors & Omissions Liability – covers actual/alleged negligence or
transmitting a virus to others; - Extortion Threats – covers threats of viruses introduction, denial of service attacks or
publish private info; - Business Income – covers loss caused by shutting down a website because of a virus or
extortion threat.
- Security Breach Expense – covers required costs of investigating breaches, notification
How Our Team Can Help:
Our experienced team of insurance professionals is here to guide you in determining your needs and
finding the appropriate solution. We do this in several ways:
- Tailored Solutions: We understand that every client/situation is unique. Our team will work
closely with you to customize an insurance plan that meets your specific needs and budget. - Risk Assessment: We will conduct a thorough risk assessment of your operations or ownership
interests to identify potential hazards and recommend appropriate coverage options. - Claims Assistance: In the event of a claim, our dedicated claims specialists will assist you
throughout the claims process, ensuring a smooth and hassle-free experience. - Expert Advice: With our in-depth knowledge of the insurance market, we can provide expert
advice and guidance to help you make informed decisions about your insurance coverage.
- Tailored Solutions: We understand that every client/situation is unique. Our team will work
Get Started Today!
Protect your investment and minimize financial risks with Cyber Liability Insurance. Contact our team
today to learn more about our insurance solutions and how we can help safeguard your ownership or
business interests.