January 19, 2015

What does cyber liability insurance cover?

What exactly does cyber liability insurance cover? We often find our client’s believing that unless they accept credit cards, or have an on-site server they do not have a cyber liability exposure. That is simply not true. Writing this, I am hard pressed to think of one business that does not have an exposure to this type of claim.

A cyber or privacy claim can come from many different sources, including but not limited to:

  • Unauthorized Access –This is the one most people think of, hackers stealing private health, personal identifiable or credit card information.
  • Human Error-This could be something as simple as an employee sending an email with personal identifiable information to the wrong recipient.
  • Privacy Breach-Improper disposal of client records could leave a company exposed, especially if these records end up in the wrong hands.
  • Cyber Extortion-A disgruntled former employee could “hold hostage” sensitive data for the purpose of financial gain.
  • Employee Breach of Privacy-Many of our clients tell us they don’t store personal identifiable information about their customers, and sometimes that is true. However, I have yet to meet an employer, large or small, that doesn’t store their employees' personal identifiable information.
  • Media Liability-Does your business have a website? If yes, then you are exposed to losses based on allegations of defamation and slander. Your site’s content can also get you in trouble for plagiarism, copyright infringement, domain name infringement or even invasion of an individual’s right of privacy.

There are multiple carriers offering coverage for cyber liability. This coverage can be tailored to fit your company’s unique exposures. Call us and we will assist you with your cyber exposure and coverage.