Many insureds think their comprehensive general liability policies will cover these security breaches, but they are wrong. With gaps created by exclusions and endorsements on the general liability policy, special cyber liability insurance coverage has become a necessity.
Some examples of provided protection on the comprehensive cyber form include:
• Breach of Duty
• Security Costs
• Acts Performed By Third Parties (Contractors, Vendors, etc.)
• Privacy Claims Caused By Employees
• Media Liability (Copyright / Trademark Infringement & Personal Injury)
Security costs are one of the major benefits of comprehensive cyber liability coverage and include forensic costs, credit monitoring, public relations management and notification costs.
Other notable coverage in the comprehensive cyber form relates to damage caused by a hacker, business interruption and cyber extortion.
The first step in cyber insurance in understanding the coverage.
The next key step in the process is to understand who has exposure and the severity of this exposure.
The simple answer is that “all business owners” are exposed. There are, however, some industries where the exposure is more severe and alarming than in others.
There are three major criteria that can be analyzed to determine if cyber coverage is necessary:
1) The first involves recording and tracking clients’ personal information including addresses, phone numbers, Social Security numbers, credit card numbers and other sensitive information.
2) The second criteria are the operation of a website or server to run one’s business.
3) The third and final criteria involve credit and debit card transactions by a business.
Keep in mind, cyber liability coverage is complex and consistently evolving.
Nearly every business in operation has been exposed, and stories of substantial losses are spreading through word of mouth and media outlets. With the adoption of technology in the business world, growing Internet threats and future technology advances, the time to position oneself as a cyber liability expert is now.
Please Call Jason Shroot @ 714-988-3325 To Discuss How We Can Protect You From Your Cyber Liability Risk.
