Your networks and data are the lifeblood of your business. Unfortunately, from your brand reputation to an employee and their financial data, cyber attacks are increasing in frequency and intensity. Couple that with the need to comply with regulations like the GDPR, which can seem overwhelming. Our team is ready to customize the solutions to keep your organization and all its information flowing smoothly and safely.
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Error & Omission liability
Crisis management coverage
A cyber attack on your computers can be harmful, and you would become liable for the losses & expenses incurred.
Depending on the policy, coverage may include the cost of hiring an attorney, forensic accountant, computer expert, or public relations expert to assess the scope of the damage, determine whose data was compromised, help mitigate the loss, and protect the company’s reputation.
Prior acts coverage
There can be instances where a data breach occurs before your policy’s effective date, and You fail to get coverage for the same.
Prior acts coverage can be taken to help cover claims related to a breach that happened before your policy’s effective date.
Crime extortion coverage
A data hacker can steal your confidential data and ask for a ransom in return. You will be liable to pay the ransom from your pockets.
This covers a ransom paid to a hacker who’s breached a company’s computer system and threatened to commit a nefarious act like damaging data, introducing a virus, initiating a DoS attack, or releasing confidential data unless the ransom is paid.
Error & omission liability coverage
There can be instances where a cyber-attack caused due to the negligence of an employee may result in a data breach.
This covers claims against the business arising from negligent acts, errors, or omissions, such as the failure to protect sensitive data, the failure to provide the notification of a data breach, or the failure to prevent a security breach that results in a DoS attack or the introduction of a virus.
There is a possibility that your business is sued for copyright or any alterations to someone else’s website, where you become liable for lawsuits, if any.
This coverage takes care of third-party advertising injury claims on the internet and includes IP infringement, copyright infringement, libel, slander, and website defacement.
What is Cyber liability Insurance?
Cyber liability insurance covers financial losses that result from data breaches and other cyber events. Policies vary because most insurers that offer cyber coverage use forms they’ve developed themselves. In addition, many policies include both first-party and third-party coverages.
First-party coverages pay out-of-pocket expenses that a firm directly incurs due to a breach. Third-party coverages apply to damages or settlements a business is obligated to pay due to claims or suits for injuries resulting from the company’s actions or failure to act. For instance, a client sues his therapist for negligence after a hacker breaches the therapist’s computer system, steals the client’s treatment records, and releases them online.
Many cyber policies provide a range of coverages, some of which are automatically included and others that are optional. A separate limit may apply to each coverage. Some coverages may apply only after the insured business has paid a deductible or retention.
The Importance of Cyber Liability Insurance
Any business with an online component or one that sends or stores electronic data might benefit from cyber insurance, as may any organization that relies on technology to conduct its operations, which is pretty much every business.
Private personal data such as contact details of customers or staff, intellectual property, or sensitive financial data are all potentially very lucrative to cyber criminals who could attempt to break into the network and steal it.
There’s also the potential for hackers to cripple a network with ransomware. A cyber insurance policy that covers ransomware could go a long way to helping organizations that fall victim to attacks like this find a way out of the predicament.
As cyber risks evolve, so too must your coverage. Understanding where traditional policies and other property and casualty insurance policies complement, overlap, or exclude cyber exposure is critical. Contact us today to know more!
Already have Cyber Liability Insurance? Switching is easy
It might be time to switch insurers whenever your existing insurer's service doesn't meet your needs. For example, it might be time to consider other options if you have poor claims experience or an unexplained rate increase.
If you cancel a previous policy before a new policy is effective, you could run into some serious financial problems.
Contact us today to help you with multiple options to choose from.
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Arnold Smith Insurance
We extend insurance coverages in WA, OR, AZ, ID & MT