As more and more skilled hackers target websites that may hold valuable information such as names and contact or financial information, it is becoming increasingly important to arm your business with Cyber Liability Insurance. This specialized coverage can protect your business if your website is hacked and confidential information is in the wrong hands. It is an important tool to have — no matter what size your business is — and it can cover more than you think.
Cyber Liability Risks
Using today’s technology can make conducting business easier and faster, but there are serious risks that can come along with being dependent on the Internet and computer networks. Even if you hire a third party to host the data stored on your website, you are likely still legally responsible for protecting that data.
Other cyber liability risks include:
- Inadvertent transmission of a computer virus or Trojan horse
- Sending an email that may crash another party’s network or computer
- Failure to prevent unauthorized access to computer network or systems by an unauthorized user
- Disclosure or misuse of confidential information
- Allegations of copyright infringement, including trademark, trade name, title or slogan
- Allegations of defamation as a result of emails, web content, blog or forum postings
What Cyber Liability Insurance Covers
If any of those risks happen to your business, you may lose income, be responsible for the high costs of damages or could even be sued. Cyber liability insurance can protect you from those risks and let you get back to doing business sooner. It protects your business from claims arising from:
- Business interruption
- Network security
- Internet Liability
- Web Content Liability
- Electronic Communications
- Intangible assets
If your company or business is open to cyber liability risks, consider purchasing an additional cyber liability policy. Traditional insurance products such as general liability insurance do not provide coverage against the risks associated with a cyber-attack.