Cyber liability is a fairly new area of insurance coverage, only becoming a necessity due to the creation and rise of the internet and electronically stored data. Because of this, there are probably several things you did not know about cyber liability insurance and how it impacts your business.
1. A General Liability Policy Won’t Cover You
A general liability insurance policy typically covers things such as legal fees or medical expenses for third parties, when there is a claim. However, did you know that this excludes the losses created because of the internet? Cyber liability insurance fills the gaps that a general liability policy leaves open. Our independent agents can help you integrate a cyber liability policy into your pre-existing business policy, or help you start you business insurance from the beginning.
2. Cyber Liability Covers A Broad Range Of Risk
There are a lot of factors to consider when it comes to the type of coverage you would need perchance your business is the target of a cyber attack. In particular, there are two areas in which most cyber liability policies would address, first and third party coverages. First party coverage pays for things like:
- Business Interruption
- Costs of notifying customers of a data breach
- Extra expenses like the hiring of a public relations firm to repair your company’s image
First party coverage helps protects you and keeps your business going in the event of a financially crippling attack. It may also cover fines or penalties that your accumulate from the breach.
Third part coverage includes your liability to your clients or to the regulatory organizations, such as the government. These potential risks include lawsuits or claims from third parties that result from a data breach. To read more on first and third party cyber liability coverage, click here.
3. You Will Always Be Held Responsible
Perhaps you don’t run your own website. Is it hosted by a third party? Is your information stored in “the cloud”? Well guess what- you’re still legally responsible should the data be compromised! While this may seem unfair, since you cannot control any crucial mistakes the web host may make, it is the reality of the situation. Cyber liability insurance does in fact protect you in such cases as these.