Times are rapidly changing and how we communicate and do business has too. This has brought on new risks and liability exposures that seemed unimaginable a few decades ago. Claims and the legal expenses to cover insured losses from, Privacy Breach, Copyright Infringement and Errors and Omissions are on the rise.
Cyber liability insurance helps to protect an association, business or individual from the negative impact and costs of a breach, theft or unauthorized disclosure in an electronic format of another party’s personal information. Any business, no matter how small or large, can be a victim of cyber crime or have a cyber breach.
Possession of any party’s personal information such as phone numbers, credit card details, dates of birth to name a few must be safeguarded. A lost or stolen laptop containing a vendor or customer’s information, or a virtual thief from the other side of the world who is hacking into a computer, phishing scams or ransomware are examples of negative events that are occurring daily. Standard property and liability policies exclude damage and liability from these kinds of events. Specialty policies offer coverage that can be customized to fit the needs of an organization.
Our brokerage represents specialty insurers that provide many of the unique coverages required by those in cyber and computer-type fields including Software Developers, Network Support, IT Consultants, Website Developers, Graphic Designers, Media and Advertising firms.
Commercial Cyber Insurance is a policy design to protect a business’ liability for a data breaches related to customers’ personal or sensitive business information. Cyber Insurance provides protection and coverage for the security and privacy of digital information and data should your business or organization be a victim of a cyber breach.
Every business can benefit from commercial cyber insurance. If you sell products through e-commerce or maintain electronic customers’ records, you should carry cyber insurance to protect your organization from risk. A breach of the systems containing this personal and commercial information can be extremely time consuming and costly.
Data compromise, cyber and privacy breach expenses insurance provides assistance for organizations before and after an event. Educational information is available with tips on preventative measures. Consultation is provided if a breach occurs with a plan on what to do, how and when to notify others and to mitigate public relations issues. There are limited expense reimbursements included to assist with managing the event. However, these types of options are not actual liability insurance coverage and can often be purchased without actual cyber liability coverage as follows.
This coverage is needed to provide defence and legal liability for damages if the business or organization (the insured) is legally liable for failing to protect confidential information.
Some insurance policies may offer coverage for PCI-Payment Card Industry fines and penalties, or defence expenses in the event of a regulatory action regarding a privacy breach. Want to learn more about Cyber Liability Insurance? Contact our commercial insurance brokers or click below to get an online quote.