Cyber Security Insurance Coverage
A stolen laptop or hacked account can instantly compromise the personal data of thousands of your customers. Or an ill-advised post on a social media site can be read by hundreds in a matter of minutes – As new technologies continue to grow, protecting yourself from cyber liability is just as important as some of the more traditional exposures businesses face in their general commercial liability policies.
Traditional business liability policies are unlikely to protect against most cyber exposures ranging from the content you put on your website to stored customer data. Awareness of the potential cyber liabilities your company faces is essential to managing risk through proper coverage. Possible exposures covered by a cyber liability policy may include:
- Data breaches: In the event of a breach, it’s now required by law to notify affected parties. This will add to costs that already include security repairs, identity theft protection for the affected and protection from possible legal action. While companies operating online are at a heightened risk, even companies that don’t transmit personal data over the internet are capable of a loss. Information stored in electronic form can be susceptible to breaches through data lost to unauthorized employee access or hardware theft.
- Intellectual property rights: Your online presence, whether it be through a corporate website, blogs or social media, opens you up to some of the same exposures faced by publishers. This can include libel, copyright or trademark infringement and defamation.
- Damages to a third-party system: If an email sent from your server has a virus that crashes the system of a customer, or the software your company distributes fails, resulting in a loss for a third party, you could be held liable for the damages.
- System failure: A natural disaster, malicious activity or fire can cause physical damages that could result in data or code loss. While the physical damages to your system hardware would be covered under your existing business liability policy, data or code loss due to the incident would not be.
- Cyber extortion: Hackers can hijack websites, networks and stored data, denying access to you or your customers. They often demand money to restore your systems to working order. This can cause a temporary loss of revenue plus generate costs associated with paying the hacker’s demands or rebuilding if damage is done.
- Business interruption: A cyber-attack, no matter the case can affect your daily operations. Time and resources that normally would have gone elsewhere will need to be directed towards the problem.
Cyber liability insurance is specifically designed to address the risks that come with using modern technology. Vanner Insurance Agency will help you analyze your needs and make the right coverage decisions to protect your operations from unnecessary risk. We will identify your areas of risk to tailor a policy that will to fit your unique situation. Contact our cyber security expert for more information about cyber risks and insurance by clicking here.