Cyber liability Insurance provides financial protection for data and electronic risks for “users” of the Internet, and other technology. Users are classified as any business that uses the internet to conduct their everyday business. Cyber Liability claims can arise from Business to Business, Business to Consumer, and Business to Government transactions.

Items to Consider When Purchasing Cyber Liability Insurance

Protect Your Business

Cyber Liability Insurance can protect your business from claims arising out of malicious, or involuntary acts. This is the hottest topic in the insurance world today, however, less than 5% of business owners have Cyber Liability Insurance.

Common Questions About Cyber Liability Insurance

If you are sending, receiving, or storing any financial, personal, or business information on your clients via the internet you need this coverage. Some examples of potential risks are: Stolen client credit card information, emails being sent to the wrong person, security breaches, losing/misplacing laptops, disgruntled ex-employees, a lockdown of the network or website by hackers, government statutes not being followed (HIPAA) , and much more.

There are three parts to Cyber Liability Insurance: A. Content Liability protects you against any alleged or actual error, misstatement posted online. B. Privacy Liability provides coverage due to release of personal information in violation of a person’s right to privacy. C. Security Breach Liability provides coverage due to any actual or alleged neglect, breach of duty. Costs associated with attorneys, restoration of data, public relations expense, ransom payment, loss of business income, compensatory damages, and government fines could be covered under Cyber Liability Insurance.

This will depend on the size and type of your business. Typically, most small businesses have a $1,000,000 -$2,000,000 limit. You will also need to select a deductible that will be sufficient to your assumption of risk level. Most deductibles are $1,000 -$5,000, and will adjust your insurance cost accordingly.

It depends on your coverage limit, deductible, gross revenue, business type, and what coverage options you select. Some Insurance carriers allow you to add some Cyber Liability Insurance to your General Liability, or Business owner’s policy. However, when this coverage is endorsed to your policy it could have coverage limitations so beware.

Cyber Liability Insurance is still considered a new product and should be purchased from a commercial insurance agent. You will want to make sure that the agent can answer questions like “What are First Party Losses related to a Cyber Liability Event?”, “Is Cyber Liability Insurance Worldwide Coverage?”, and “Does Content Liability cover for copyright or trademark infringement if used online?”. If your agent can’t answer these questions, look elsewhere! One final point on Cyber Liability Insurance; this insurance is unique since most Insurance Companies have their own tailored Cyber Liability Insurance Policy. Just make sure you review the quote thoroughly and understand what options are available to you.