Reasons You Should Have Cyber Liability Insurance.
Why Your Business Needs Cyber Liability Insurance
In today’s competitive business environment, an internet presence is considered a necessity. Online services continue to expand and now include sophisticated e-commerce capabilities and mobile access. Businesses of all sizes are collecting credit card information and assembling sophisticated customer databases. By providing information to the public, a business assumes the role of a traditional publisher. This exposure can lead to an assortment of potential liabilities. Whenever data is collected or distributed by a business, the company assumes responsibility for the safety and accuracy of the information. If customer data is stolen or lost, the business can face significant legal liability and possible regulatory action.
The Importance of Cyber Liability Insurance
Cyber liability insurance is critical for every business that operates a website or stores vital customer information. While large ecommerce sites receive the most attention when a cyber crime is committed, over 50 percent of all data breaches occur at companies with less than 100 employees.
Most general liability policies expressly exclude losses incurred from online activity. Conversely, cyber liability insurance covers internet related losses such as penalties, fines, server infrastructure damage and actions related to client data. Cyber liability insurance mitigates these risks and provides protection regardless of where the data is stored.
Since internet liability laws are still in their infancy, many business owners assume they are protected from the effects of a data breach, especially if it occurs through a third party hosting service. Small businesses typically use point-of-sale systems that are outsourced to an independent provider. While the control of the system may be offsite, any revenue losses resulting from a breach are the sole responsibility of the subscriber and not the host.
How Cyber Liability Insurance Reduces Risk
Also known as e-commerce insurance, cyber liability protection was developed to help reduce the risk associated with a company’s internet presence. Policies provide specific safeguards to combat the harmful effects of a cyber attack. While insurance carriers offer different policy features, the most common coverage includes:
- Data Breach Insurance: This provision covers expenses relating to incident management, investigation, victim credit checking services, remediation, legal costs and regulatory fines.
- Cost Reimbursement: This coverage provides reimbursement for costs relating to any cyber attack including staff hiring, independent contractors, supplies and other related expenses.
- Defamation Protection: Coverage is provided for any legal action relating to defamation, copyright infringement or invasion of privacy.
- Network Security Protection: Businesses are covered against third-party inflicted damages that result from denial of access attacks, theft of data actions and other expenses related to lost information.
- Extortion Liability Protection: This provision provides coverage for losses resulting from extortion threats and the professional fees associated with addressing the crime.
Key Elements in a Cyber Liability Policy
Cyber liability insurance policies can be tailored to meet the specific needs of the client. Most policies provide basic coverage and offer a variety of additional options. The core policy should always include coverage for data loss or theft, data corruption and loss of business income from a documented attack. Liability coverage for legal costs, judgments, regulatory actions and settlements is also recommended.
Does my business really need General Liability Insurance?
Question: What is General liability insurance?
Answer: Sometime General liability is known as business insurance and business insurance is the policies most commonly used by business’s and companies to protect themselves for loss of assets that can result from litigation for liability.
Question: I work from home, do I need liability insurance?
Answer: Yes, even if you are a home based business, you should have liability insurance. The insurance policy will provide both damages and defense if you, your employees or your services or your products bring about Property damage or Bodily injury to a third party.
Question: What are the benefits of Liability insurance?
Answer: If for any reason your business/company does gets involved in a lawsuit for anything it did to cause an accident of for anything it might have failed to prevent such an accident, a general liability insurance policy is great to have to for your protection.
Question: What levels of general liability coverage Do I need?
Answer: By working with a general commercial liability insurance specialist at O’Connor & Co. Insurance Agency, Inc., you can be sure that your business/company will get the adequate amount of coverage given your unique circumstances. Our liability insurance specialist can help guide you to an appropriate insurance baseline for your policy.
Don’t delay. Contact O’Connor & Co. Insurance Agency, Inc. for any information and free quotes on business insurance to protect you. Call 800-254-9594 or 508-943-3333 for any question you have your any of your business insurance needs.