January 19, 2021 | Blog Post No.5

Coverage Insights: Cyber Liability Insurance

Posted By: Admin_news

In This Blog

What is Cyber Liability Insurance?

What Does Cyber Liability Insurance Cover?

Possible exposures covered by a typical cyber liability

What is Cyber Liability Insurance?

As technology becomes increasingly important for successful business operations, the potential exposures facing businesses continues to grow. In this day and age, a stolen laptop or hacked account can instantly compromise personal data of thousands of customers. Also, a misguided post on social media can be read by hundreds in a matter of minutes. Thus, to avoid the risks that may arise from cyber attacks, you need to consider having Cyber Liability Insurance for your firm.

Cyber Liability Insurance protects your business against technology-related exposures. It provides enough coverage that can help respond and compensate for the damages of technological threats in your company. Awareness of the potential cyber liabilities your company faces is essential to managing risks through proper coverage.

What Does Cyber Liability Insurance Cover?

Whether big or small, every type of business faces cyber risks. Thus, protecting yourself from Cyber Liability is just as important as some of the more traditional exposures businesses account for in their General Commercial Liability Policies. Cyber Liability Insurance covers the following factors:

1. Data breaches

Cyber Liability Insurance covers the costs you need to pay to counteract a breach such as forensic costs and customer notification costs. In the event of a breach, notification of the affected parties are now required by law. Thus, Cyber Liability includes coverage for security fixes, identity theft protection for the affected and possible legal actions. While companies operating online are at a heightened risk, even companies that don’t transmit personal data over the internet could be susceptible to breaches through data lost to unauthorized employee access or hardware theft.

2. Intellectual property rights

Your company’s online presence, whether it be through a corporate website, blogs, or social media, makes you vulnerable to risks that publishers also face in their jobs. Such risks include libel, copyright or trademark infringement, and defamation, among other things. Cyber Liability Insurance compensates for the legal costs you need so you can defend your company from lawsuit claims. Moreover, its coverage applies to both online advertising and printed advertising.

3. 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.

4. System failure

A natural disaster, malicious activity or fire could cause physical damages that could result in data or code loss. Moreover, you could be held liable for the damages in situations such as 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. Cyber Liability Insurance can help you recover from data or code loss due to an incident. It also protects you from third-party lawsuit claims that may arise due to the damages.

5. 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. In this manner, Cyber Liability Insurance can help compensate for the temporary loss of revenue and other costs associated with paying the hacker’s demands or rebuilding damages.

6. Business interruption

If your primary business operations require the use of computer systems, a disaster that cripples your ability to transmit data could cause you, or a third party that depends on your services, to lose potential revenue. From a server failure to a data breach, such an incident can affect your day-to-day operations. Time and resources that normally would have gone elsewhere will lead to the problem, which could result in further losses. Furthermore, this is especially important as denial of service attacks by hackers have been on the rise. Such attacks block access to certain websites by either rerouting traffic to a different site or overloading an organization’s server. Cyber liability insurance is specifically designed to address the risks that come with using modern technology. Risks that other types of business liability coverage simply won’t. The level of that coverage need depends on your individual operations and varies depending on your range of exposure. Indeed, it is important to work with a professional broker. Having a professional broker can identify your risk and they tailor a policy that fits your unique situation.
Cyber Liability Insurance is specifically designed to address the risks that come with using modern technology. Risks that other types of business liability coverage simply won’t. The level of that coverage needed depends on your individual operations and varies depending on your range of exposure. Indeed, it is important to work with a professional broker. Contact Us so you can work with our professional brokers who can help identify your risks and tailor a policy that fits your unique situation.
Overall, phishing, data breaches and  other cyber attacks have been on the rise. Such attacks block access to certain websites by either rerouting traffic to a different site or overloading a business’ server. As a result, you will need to settle business income losses, legal fees and other bills so you could recover from the damages. That is why having Cyber Liability Insurance is especially essential. It could help your business overcome the dangers of the digital world that can occur anytime.
Start your Cyber Liability Insurance application today so you can protect your business from risks. News Insurance Services is here to help you analyze your needs and make the right coverage decisions to protect your operations from unnecessary risk. Get your Cyber Liability Insurance Quote Now!