Cyber Liability

Protecting Your Business

Cyber Liability
What It Is…

Cyber liability insurance is the insurance that protects a business in the event that financial losses are incurred due to cyber events, such as a data breach. Cyber liability insurance policies include first-party coverage. This type of coverage pertains to the losses that your company sustains, but it also can include third-party coverage. Third-party coverage pertains to patrons of your business. These patrons would have claims against your company for negligence if the patron’s financial information were to be released online.

Who It Is for…

If you use your customers’ electronic data in your business, you need to purchase a cyber liability insurance policy. Specifically, if you send your customers messages through email, text messaging or social media, cyber liability insurance is a good option for you to take. It is also good for a company that sells products through a website.

How It Works…

Cyber liability insurance reimburses you for the costs associated with overcoming the damage a hacker has done to your computer system. If your customers’ personal information is breached, the insurance policy would also pay the judgment that the court orders you to pay the victims.

Different Types of Coverage in Existence…

First-party coverage applies to the company, and third-party coverage applies to your customers. You also have the option of purchasing worldwide coverage. Worldwide coverage would apply to data breaches that occur anywhere in the world. Business interruption coverage pays your expenses during the period that your business is recovering from a cyber attack.

Major Benefits…

When there is a breach in your security system, business operations can be interrupted. It also causes you to spend money that you do not necessarily have at the moment to repair the breach. You may also lose financially because the breach results in goods and services being stolen from your company. The benefit of having cyber liability insurance is that you can tailor it to your specific needs so that you can confront any issues related to a breach in your system without having to borrow money. It will also protect you against the devastating losses you would incur if you have to interrupt your business operations.