In a society driven by technology, it is difficult to imagine any business surviving without the use of computers, the internet, and electronic data. Continuous advancements in technology make it possible to conduct business anywhere, but with the ease that technology provides, it also leaves businesses vulnerable to cyber threats and attacks. With cybercrimes becoming more prevalent, it is imperative for both large- and small-employers to protect themselves with cyber liability insurance.
One of the most common misconceptions about cyber liability protection is that it is covered under the company’s general liability policy; however, this coverage is most likely excluded since general liability focuses on providing protection for bodily injuries and property damage stemming from the company’s services, operations or products. A cyber liability policy focuses on the financial loss that results from cyber threats and attacks.
Of course, not all cyber liability policies are the same as different businesses have different needs, but a handful of coverages can be seen in almost every policy. Loss or damage to electronic data, cyber extortion losses, loss of income, notification costs, and damage to reputation are just a few that often appear in a cyber liability policy. Additional coverages are available including computer fraud and funds transfer fraud.
Other types of cyber liability coverages relate to third-party claims and provide coverage from lawsuits that materialize as a result of the cybercrime. Do you remember the massive electronic data breach that Target Corp. encountered in 2013? This cyber attack resulted in a $10 million class-action lawsuit settlement. Let’s hope Target had a comprehensive cyber liability policy in place!
Protection is key in this technology-driven world, and cybercriminals do not discriminate between large- and small-employers. Everyone and every business are vulnerable if technology is utilized to carry out personal and business endeavors. Contact BrookStone Insurance Group for more information regarding cyber liability protection for your company.