As technology becomes more essential to business and life, the value of a strong cyber liability policy can’t be understated.
What is cyber liability insurance?
Cyber liability insurance addresses the risks that come with using modern technology – risks that other types of business liability coverage simply won’t cover. As reliance on technology continues to increase, new risks and exposures will continue to emerge. As your business grows, make sure your cyber liability coverage grows with it.
Why do you need it?
In an age where a stolen laptop or hacked account can instantly compromise the personal data of thousands of customers, or an ill-advised post on a social media site can be read by hundreds in a matter of minutes, 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.
What is covered with cyber liability insurance:
Cyber liability offers protection from losses associated with data breaches and the resulting legal claims, security fixes, and public relations efforts required to recover service and re-establish trust.
Intellectual property rights
Your company’s online presence exposes you to libel, copyright or trademark infringement and defamation, among other things.
Damages to a third-party system
You could be held liable for an email you send that contains a virus or a failure of software your company distributes.
A natural disaster, malicious activity or fire could all 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 generally not be covered.
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 and generate costs associated with paying the hacker’s demands, or rebuilding if damage is done.
If a disaster or malicious activity strikes your company’s computer system or ability to transmit data, that could affect revenue for you or a third party dependent on your system.
Other coverage options may also be included and are not limited to what has been indicated.
Frequently Asked Questions
How do I know if I need cyber liability insurance?
Virtually every company interacts with technology on some level and would benefit from cyber liability coverage. A Butler Byers risk consultant will help you assess the level of risk and inform you of your options.
How can I reduce my level of cyber risk?
The digital world is complex and changing frequently. A Butler Byers risk consultant will assess your cyber risk as part of your overall Risk Reduction Plan. Beyond insurance, consulting with an IT security professional can help reduce your overall risk.