Own a Business? You Need Cyber Liability Insurance
If you own a business, cyber liability insurance might be a coverage you are currently missing. Just during the past few years, cyber liability insurance coverage has become more and more prominent. There are good reasons as to why it’s a recommended coverage for any business. Remember Target’s credit card breach? How about Time Warner Cable’s customer account breach? Similar situations have happened to Home Depot, American Express, eBay, Anthem Healthcare Insurance and many more. In fact in 2013, there was a 17.1% increase in data breaches and that number is expected to keep growing. If you aren’t sure if you have cyber liability, call your agent today and find out. American Heritage Insurance Group has a specialized commercial department that is protecting every client by recommending and providing quotes with cyber liability. If you need a quote, call 513.984.5255. Are you interested in learning more about cyber liability insurance? Keep reading.
Cyber Liability Coverage’s
Cyber liability includes the following type of coverage:
- Errors & Omissions (E&O): this coverage is for claims on errors in the performance of your services. It can include technology services, lawyers, doctors, architects, and engineers.
- Media Liability: this coverage is for claims involving advertising and infringement of intellectual property, copyright/trademark infringement and libel and slander. This coverage can also be extended offline.
- Network Security: this coverage is needed in case you have a failure of your network security and a data breach, destruction of data, virus transmission or cyber extortion occurs because of the failure.
- Privacy: this coverage includes a failure of your network security and applies to physical records (improper disposal, lost laptop, full information sent to the wrong person, etc.). It can also include the wrongful collection of information.
What is Affected During a Data Breach
You might not realize just how expensive a data breach could cost you. Do you know everything that could be affected if your company experiences a data breach.
Direct costs can include: forensic investigation of the breach, legal advice to determine your notification and regulatory obligations, notification costs of communicating the breach, offering credit monitoring to customers as a result, PR expenses, loss of profits and extra expense during the time your network is down due to business interruption.
Other costs include legal defense, settlements, damages, judgments, liability to banks for re-issuing credit cards, cost of responding to regulatory inquiries, and regulatory fines and penalties.
Also, your reputation might be affected, loss of future revenue, you will have costs to improve internal technology systems, and lost value of your own intellectual property.
As a business owner, money might be tight but investing in cyber liability insurance is one of the safest and most necessary expenses you need to incur. Without cyber liability, you could lose millions if not more depending on how large the breach is. Remember, it’s not only your information that you are protecting, it’s also your customers.
Sources: Woodruf Sawyer and Company