Cyber Liability


Cyber Liability: An Insurance on the Rise

As the world becomes increasingly virtual and companies are conducting more and more business through online portals, accepting online payments and offer products or storing intellectual assets online, the need for additional protection from data breaches and financial losses has become increasingly important. Another term used for this type of coverage is “data breach insurance”

Cyber Liability Coverage is there to cover financial losses resulting from cyber events and data breaches. Cyber Policies typically include two parts: First Party Losses exist for your own company and pays expenses that occur to you directly. Third -Party Losses helps cover losses for lawsuits when a data breach effects a client’s network or information in your possession.

Although Cyber Liability is often used for larger firms, many small to medium sized companies should consider coverage for data breaches and other online exposure. Companies large and small still hold Personal healthy information (PHI) and or Personally Identifiable Information (PII) possible exposure’s that corporations face:

  • Damage to a company’s reputation
  • Possible lawsuits that arise from Data breach
  • Your computers get a virus such as ransom ware that exposes client’s sensitive information.
  • Storing Customers information

Some common types of companies that carry significant Cyber Risks are:

Finance, Education or Healthcare.

Now that we have addressed the common risks associated with Data Breach, What does Cyber Liability cover?

  • Loss of Income from a down network
  • Customer or Employee related lawsuits arising from privacy issues
  • Fines from Federal or State agencies
  • Legal costs
  • Extortion expenses
  • This is not a comprehensive list and we are available to answer in detail and questions you may have.

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