Cyber Liability Insurance
Cyber Liability Insurance Information
What is cyber liability insurance?
The sensitive customer data stored within company servers and in the cloud is vulnerable to attacks from hackers and other cyber criminals. Most people think only large corporations are in danger of cybercrime attacks. But, everyone using computers connected to the Internet are at risk!
What constitutes a data breach?
A data breach is the loss, theft, accidental release or accidental publication of Personally Identifiable Information (PII) and Protected Health Information (PHI) including:
- Social security number
- Bank account number
- Credit or debit card numbers
- Driver’s license number
- Email address
- Patient history and medications
It can occur through hacking, theft or release due to unauthorized access, stolen or lost electronic files, stolen or lost laptop, smartphone, tablet, or computer disks, stolen credit card information, employee error or oversight. The most common cause for a data breach is negligence.
Commercial Cyber Liability Insurance
Does my business insurance policy cover data breaches?
The standard business insurance policy covers tangible assets such as office furniture and equipment. Since electronic data is not considered tangible, it is generally not covered under a normal business policy. The solution is to purchase a cyber liability policy for your business. A general liability policy often excludes losses incurred because of the Internet. A cyber liability policy can fill in that gap. It may be the difference between closing your business and making a comeback.
What is covered by a cyber liability policy?
- Network Security and Privacy Liability
- This covers third party claims arising out of a breach of your Network Security or other private information.
- Example: A client sues you because their information was compromised and stolen due to a data breach within your office.
- Privacy Breach Response
- This covers first party legal, public relations, advertising, IT forensic, call center, credit monitoring, identity theft restoration and postage expenses incurred by you in response to a privacy breach.
- Example: Since you have had a data breach, you are now legally required to notify all affected individuals via first class postal mail and to potentially provide credit monitoring for all affected individuals. The average cost to notify affected individuals is $20 per record.
- Network Asset Protection / Network Restoration
- This covers expenses to recover and/or replace data that is compromised, damaged, lost, erased or corrupted.
- Example: You have to restore your client records after a virus attacked your network and corrupted all of your files.
- Regulatory Defense and Penalties
- This covers defense costs and potentially fines/penalties for violations of privacy regulations.
- Example: You have to appear at and pay penalties for a Privacy Regulation Proceeding alleging a violation of any Security Breach Notice Law (HIPPA).
- Cyber Extortion
- This will pay extortion expenses and extortion monies as a direct result of a credible cyber extortion threat.
- Example: A hacker gains access to your network and withholds your data from you unless you pay X amount of dollars to the hacker.
We can evaluate your business’s needs and find a policy that offers the best possible protection against cybercrime. For a free, no-obligation quote, please click on the click here or call (800) 807-6871.
Personal Cyber Liability Insurance
Does my homeowners insurance policy cover data breaches?
The standard homeowners insurance policy cover tangible assets. Since electronic data is not considered tangible, it is generally not covered under a normal homeowners policy. The solution is to add cyber liability coverage to your homeowners policy.
What is covered when adding cyber liability to my homeowners policy?
Be sure to add cyber liability to your homeowners policy today, you never know when a hacker can take your most personal information! For a free, no-obligation quote, please click on the click here or call (800) 807-6871.