Cyber Liability Insurance
In today’s business environment, if your company does any transactions via the internet, especially if you are processing credit or debit cards, and if your company keeps any client information such as medical records, social security numbers, or any other vital information, having Cyber Liability Insurance coverage is a must. Think for a minute, would your company survive the loss or theft of valuable company data stored on your servers, your website being shutdown from a power failure, or the ultimate nightmare– your site being attacked, or a false-claims accusation triggered by a Twitter, Facebook, LinkedIn, a Company Blog or some other post? More times than not, the answer likely would be no.
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Please be aware that Cyber Liability is not a standard insurance product. Most times the policy will be designed to meet a business’ unique needs, but it protects against two types of risk, first-party and thirdparty risks. To review the first party coverage, it may cover such items as engaging a public relations firm to manage a data breach incident, crisis management, or the costs associated with a forensic analysis if your company was infected with a computer virus that destroys your software and data, the cost of hiring a firm to repair and restore your company’s computer systems, and the loss of business income resulting from a data breach. In reviewing third party coverage, it refers to Privacy Coverage and Network Security. This type of Cyber Insurance coverage may cover such losses stemming from breaches in network security or unauthorized access events. One more area is Privacy Regulatory Proceeding Coverage. This coverage generally is provided as a sub-limited part of the privacy liability coverage, which could cover such costs resulting from a civil, administrative, or regulatory proceeding that alleges the violation of a privacy law. Cyber Liability is not something that has a definable timeline like a water burst that interrupts business operations. A Cyber Liability claim is one that could evolve over a much
longer period of time.
We, at PJO Insurance Brokerage, feel it is in your company’s best interest to take a good, hard look at your business, your data and how valuable it is, and what the costs would be if something went wrong. If you believe absorbing these kinds of losses could wipe out your company, you’re a good candidate for cyber liability insurance. If your company possesses what we refer to as valuable data, especially if it is associated with regulated personal, financial, or medical information about clients or consumers, you may be wise to consider adding “privacy” coverage for the potentially onerous costs of a data breach. If you feel your company would struggle to survive an extended website or computer-network shutdown, you may want to look at network-security coverage. Another area that you may want to consider, especially if your company hosts any online discussions and risks libel or falseclaim accusations is media coverage. As you can see, with the changes that happen in the tech world and how fast they happen, having a cyber liability policy may be necessary coverage for your company.
We, here at PJO Insurance, would welcome the opportunity to discuss this type of coverage with you for your business.