Cyber Liability Insurance for Your Business

image courtesy of Stuart Miles at www.freedigitalphotos.net

As we’ve talked about in our last two posts, Cyber Security is a major concern not just for large corporations but for any business that operates with computers on the internet. Breaches of information cause lawsuits when hackers steal names, dates of birth, and social security numbers. And there are costs to report the breach to authorities and customers.

But liability isn’t the only thing businesses need to worry about regarding cyber security. They also face costs from the damage to their electronic data. It needs to be restored and the business could be interrupted while the equipment is down.

Like your Commercial General Liability policy that buys you an expert defense, so, too, your Cyber Liability insurance policy buys you a response team to give you the expert help you need right after the breach. They will help you trace the cause, guide you to the government reporting, and reassure your clients whose personal info was stolen.

What Do You Get with a Cyber Security Liability Policy?

The following is a list of coverages from one of the companies we represent that provides Cyber Liability, The Philadelphia Insurance Company.

Coverage for Loss to You and Your Business
Loss of Digital Assets: the damage to or corruption of your electronic data and computer program.

Non-Physical Business Interruption and Extra Expense: Income reimbursement during the period of restoration of your computer system.

Security Event Costs: Customer notification, regulatory fines and penalties, and public relations expenses.

Cyber Extortion Threat: Reimbursement for extortion expenses resulting directly from a credible threat to the insured’s computer system.

Cyber Terrorism: Reimbursement for income loss, interruption, and special expenses, directly as a result of an interruption or failure of your computer system caused by an act of terrorism.

Coverage if You Are Sued
Network Security/Privacy Liability: Legal liability for a security breach or privacy breach resulting from alleged violations of HIPAA and other privacy protection laws/regulations (state, federal or foreign).

Employee Privacy Liability: Legal liability for a security breach or privacy breach of employees.

Electronic Media Liability: Claims arising from the following on the insured’s internet or intranet site,
Defamation, libel or slander
Invasion of an individual’s right of privacy
Plagiarism or misappropriation of ideas under implied contract
Infringement of any copyright, trademark, title, service mark
Domain name infringement

There are more coverages than just those listed above. We encourage you to call us at Scalzo, Zogby & Wittig so you can find out more about this important, timely coverage.

Until Next Time,

Your SZW Team

See also the first two posts in this series:

What is Your Risk of a Cyber Attack

Your Business’s Data Protection and Cyber Risk

Scalzo, Zogby & Wittig, Inc. is your New Hartford area independent insurance agent. Call us for a quote on insurance for your home, car, business, or life at 315.792.0000.