Cyber Liability

Cyber Liability Insurance Overview

Cyber liability insurance is intended to help the insured recoup losses related to both first and third party risks associated with supplying and collecting information on the internet. Since the internet has existed, people have put confidential personal health and identification information on the web, which can leave it vulnerable to glitches and hackers.

What Cyber Liability Insurance Covers

Anyone who has a website is responsible for information collected through the website as well as information readily available on the site, including advertising. Privacy laws require businesses to keep personal confidential information private. When a breach occurs, and third-party personal confidential information is exposed, the company can be held responsible for notifying those whose data was compromised, as well as covering financial losses associated with their losses and third-party damages.

Cyber liability insurance can cover the following legal liabilities and exposures relating to third-party personal confidential information:

• Network Security and Privacy Liability – This includes employee privacy liability. Your policy can cover both network security and privacy liability breaches, including an attack.
• Electronic and Media Liability – Your policy can cover personal injury or advertising injury due to electronic and printed materials.
• Regulatory Liability – Your policy can cover regulatory fines or penalties faced due to a network security or privacy liability breach.

Cyber liability insurance can be customized to fit your business’ needs. In some cases, your business will face costs due to damages from exposures as well.

• Notification – The cost of notifying customers whose information has was exposed.
• Business Interruption – This coverage can pay for the loss of income in the case of a computer shutdown when a breach occurs.
• Cyber Extortion – This can cover the cost of paying for an extortion threat on the web.
• Cyber Terrorism – This can cover the cost of an event or threat of cyber terrorism.
• Loss of Digital Assets – This coverage can pay for restoration or recovery of digital data that has been lost or corrupted.

Considerations for Cyber Liability Insurance Coverage

Traditional liability insurance does not cover the exposures and risks faced by internet businesses. A good cyber liability policy can pick up where your general coverage leaves off.

Many businesses and individuals are not aware of the risks they may face online, and may not be informed when a data breach has occurred until it is too late. Because cyber liability coverage includes both third party and first party damage coverages, it is a valuable tool in maintaining your business.

How to Get Started

Cyber liability coverage is especially crucial for small and medium-sized businesses who have a website. Discuss your business needs with an insurance professional at Fusco & Orsini, who can help you create a customized cyber liability policy, tailored to your business. Click here to schedule time with our cyber team.