Cyber Liability Insurance
Cyber Liability sounds scary because it is! It's a brave new world of information and that information is valuable to you, your clients and thieves. Cyber Liability coverage primarily is designed to protect you against liability and expenses arising from the theft or loss of data. Coverage also typically protects you from liability and expenses due to a breach of data security or privacy. If you have access to or host sensitive client data, you have an exposure and should consider cyber liability insurance. While your clients should carry their own cyber liability coverage, they often make this a requirement to enter into contract with them. It is wise to consider purchasing coverage for your business regardless if it is required by a client.
Still wondering if you need Cyber liability? Here are some questions to ask yourself:
- What would be the worst-case scenario if the private, personal information your employees and clients entrusted to you were stolen? (Money, reputation, loss of customers)
- Do you have written agreements concerning privacy with outside vendors? (Document storage, janitorial services, cloud providers)
- What type of social media is your business using? Are there restrictions to it's administration? (Landmines include-Invasion of privacy, copyright and trademark liability, defamation and slander)
- Are you familiar with the most recent privacy breaches in your industry? (Google or visit privacyrights.org)
- Are you aware that the average 1st party cost for a claim is $73.00/record? (Costs include Notification and credit monitoring for customers as well as public relations and call centers)
- How many paper and electronic records do you have stored? (Past and present clients; past, present and prospective employees)
- Are you aware of the exclusions in your P&C and GL policies? Copyright, trademark, social media, electronic data and cost to recreate, outages caused by viruses or hackers)
- Are you familiar with our state's regulations for notification in the event of a privacy breach? (www.ncsl.org)
- Do any of your employees access your system from a mobile device? (ThePonemon study shows 81% of employees have access to PI/ on /Pads,smart phones and employee laptops)
- Have you considered the Third-Party costs to your business in the event of a Privacy Breach? (Intellectual property infringe ment, reputational injury, customer's systems being unavailable and the cost to defend your business against numerous lawsuits.
For more information on protecting your business from a cyber attack and to get appropriate coverage as a failsafe, please contact us for a consultation.