Our lives are increasingly digital. A year ago, who even knew what a “Zoom” was and now it may be the single largest gathering location. More and more of us are working from home, or at least, not in a traditional setting with a greater reliance on computers and devices than ever before. We do not know what long-range effects any of this will have on society, but one thing that we know is that we must deal with a whole new range of security and safety issues.

What is Cyber Liability?

In the insurance field we call this new area of concern, Cyber Liability. A Cyber Liability insurance policy can provide a wide range of coverage (and often services) to help you avoid some of the more common cyber security issues. This is an issue for businesses and individuals. These policies have not yet been standardized, so each insurance carrier develops their own policy with different coverage, terms, and conditions–there can be tremendous differences in these policies. This is one reason you may want to work with an independent insurance agent who has many options to help you develop a coverage plan that meets your specific needs and concerns.

First-Party Cyber Liability Benefits

Most Cyber Liability insurance policies include what we call first-party benefits and third-party benefits. A first party benefit is insurance that you purchase that provides coverage for your own property. Some first party features you may need in a Cyber policy include:

• Data Restoration–this is an insurance benefit that you use to recreate lost data because of a breach or extortion threat.
• Loss of Income and Extra Expense provides funds to help you recover your lost income or extra expenses due to a targeted or accidental cyber attack.
• Cyber Extortion is a common cyber security concern, especially for small businesses.
• Notification Costs–provides funding for your responsibilities under various State and Federal laws to notify those affected by a breach.
• Crisis Management provides funds and/or services to help you navigate these waters and mitigate the long-term damage to your business.

Third-Party Cyber Liability Claims

When someone else sues you because of a cyber attack or data breach, that is considered a third-party claim and these policies provide coverage for these suits and allegations as they are not covered under your General Liability policy (which is typically limited to bodily injury and property damage). Examples of third-party situations may include:

• Network Security and Privacy liability suits.
• Electronic Media Liability–may be a situation where you inadvertently cause libel or slander of another party.
• Regulatory Proceedings–you may be held responsible for damages under State or Federal statutes and regulations.

Just about every business today maintains or collects some level of personal information in a digital format, leaving them vulnerable to cyber attack, data breach, and regulation. With more of our employees possibly connecting to our important data through less secured networks and connections, we are perhaps less secure than we were before the pandemic.

Get Cyber Liability Insurance for Your Business Today

If you have questions about your cyber security and would like a quote on cyber liability insurance, contact us today.