Cyber Liability:
With the world’s ever increasing reliance on
information technology, all businesses, large and small,
have a duty to protect their sensitive data including
financial and personal information of their clients. A data
breach is considered to be the unauthorized use of, or
access to, electronic data or software residing within your
network or business. A typical insurance policy will not
cover a loss and the added costs associated with a breach to
your company’s or client’s data that reside on your computer
system. A cyber liability policy will directly address such
situations and could cover the cost of client notification,
credit monitoring services, public relations, extortion
demands, potential lawsuits and fines and penalties
resulting from a data breach.
What you should know about data breaches:
- The culprit is often sometimes close to your business;
- Size doesn't matter. Half of all companies that suffer a data breach
have fewer than 1,000 employees;
- A simple mistake can create a breach. A lost laptop or smart phone
contains a gateway to your businesses sensitive data.
Many commercial insurance policies allude to computer
coverage, but the fine print typically excludes Cyber
Liability. You should discuss the vital need for cyber
liability coverage with your agent.
