Cyber Liability Coverage for Your Business

A security breach can shut down a business so it’s important that you protect yours.  There have been a number of security breaches to some of the largest companies. From Target to Neiman Marcus, businesses have felt the effects of a security breach. The problem for companies is that it’s difficult to regain the trust of your customers if their information is leaked. Fighting bad PR may be a huge hurdle for companies, but there are so many other consequences to having a security breach. The legal ramifications, money, and stress it can cause is frightening. And it doesn’t just happen to big companies.

cyber liability insuranceAsk yourself, as a small business owner, “Is my customers’ information at risk?”. Their email addresses, drivers’ license numbers, credit card information, and maybe even social security numbers may be part of your database. What would you do if that information is tapped into or leaked? One thing you can do to prepare is obtain Cyber Liability Insurance for your business. There is a range of coverage available to your business. You can do everything in your power to protect your information, but unfortunately some things cannot be prevented. For life’s events that can’t be prevented, be prepared with great coverage.

Cyber Liability coverage can be complicated and will vary by business, but the right commercial lines insurance agent can help guide you through the process. The best things you can do to make sure you have all of the coverage you need in your business insurance portfolio.  Contact an agent and review your policies. Your business and your needs are unique, but the more you know the better prepared you will be for a conversation with your agent.

Let’s break down these three coverage types:liability insurance business
  • Security Breach Liability Coverage
  • Privacy Breach Liability Coverage
  • Breach Notice Response Service Coverage

 

Security Breach Liability Coverage

This coverage covers your legal liability for damages resulting from the inability or failure of the technical or physical security measurements to prevent unauthorized access or use of your computer system. This definition can sound a little complex, so let’s get a better understanding with an example. One example of this is that a hacker takes a stolen or lost laptop to access another person’s business system and shuts down a web page. The above example can easily happen to a company who has personal laptops for their employees. It is also a reality for any business that has systems that contain personal information which insurance for cyber liabilityemployees access from home. If your employee clicks that pesky “save password” then loses their laptop, you could be in trouble.

The same can be said for someone that breaks into your business at night and is able to gain access to your computers. It is essentially the new-school version of all of your personal files being stolen. There are a lot of scenarios where having this coverage can become crucial to your business. Many of these situations can happen to anyone, in any business. More common than physical theft, a virus can enter your computer and leak information to the infector.

Privacy Breach Liability Coverage

This can offer coverage for your actual or alleged liability for damages that result from theft or loss of personally identifiable information. This includes failure to comply with a company’s privacy policy. Examples of this include a breach of your privacy policy, breach of a person’s right to privacy, intrusion upon a person’s seclusion, or public disclosure of a person’s private information. An example of this scenario is if information was stolen or a laptop is used to create a fake credit card account. If your company is liable for an issue due to something taking place on your company computers, or with company information, you could be in real trouble.

Having privacy breach liability coverage can help you to pay for the many costs associated with a privacy breech, either written or electronic.  This could mean anything that governs the collection, confidentiality, integrity, accuracy or availability of personally identifiable information provided to your employees or third-parties. This will also cover disclosure of non-public information that was provided to you under a confidentiality or written non-disclosure agreement.

Breach Notice Response Service Coverage

If you need coverage for breach notice and forensic expenses, this coverage will be useful. It can commercial lines liability insurancealso help pay for notice fulfillment services and credit monitoring services to the company with breach notice laws. If you suffer a security breach at your company, you will be required by state regulations to notify all customers that their personal information has been at risk. Requirements like these are set to help your customers stay in the loop and are extremely important, but they can cost you money.

In today’s world, having cyber liability insurance for your business is just as important as other insurance coverages. You have insurance to protect your commercial building, insurance for your commercial vehicles, and workers comp insurance to protect your employees, but what about your information? Many companies have programs containing personal information of their clients. There are measures to take to protect that information, but security breeches can still happen. Get the coverage you need to protect your business in the event of a security breach.

When you think of the cost of repairing the damage and reputation of your business after a security breach, you will find that having the coverage is worth it. The same way you need insurance to rebuild and repair after a fire or break-in, you will need insurance to rebuild and repair after a cyber liability issue.

Call 888.865.1244 today to talk to a knowledgeable agent about your policy needs.

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