Cyber Liability Insurance
Cyber liability Insurance addresses the first-party (direct damage) and third-party (liability claims) risks associated with e-business, the internet, networks, and information assets which are not covered by traditional general liability insurance policies.
Do you need Cyber Liability Insurance?
When a corporate network, connected to the outside world, becomes compromised, the resulting damage can be tremendous. In today’s networking world, damages and security breaches to one computer can potentially lead to meaningful financial losses throughout an entire networking community.
A company’s network carries a unique loss potential. The potential exists for hackers/crackers, viruses and malicious code to cause damage throughout the entire virtual enterprise. The damage to computer systems can also have a dramatic impact on each of your business stakeholders. In either case, the security breach in your system may cause untold damage to others linked to your system who depend on your stability.
There are several types of cyber liability protection most coverage’s are purchased ‘a la carte’ and incorporated into one policy. The various options include:
The marketplace for cyber insurance continues to expand, it’s important that your company is aware of what you’re purchasing as coverage terms vary among insurance providers. You might be able to purchase an endorsement from an existing policy you already have in place in lieu of purchasing a specific cyber liability policy. You need to evaluate your risk and sources of exposure regularly, and make sure your insurance program keeps pace with the risks and realities of today’s business environment.
Cyber Liability Insurance Costs
Cyber Liability Insurance costs are based on a number of factors which include:
- Type of business
- Gross revenue
- Amount of payment card transactions annually
- Amount of records containing Personally Identifiable Information* you store, at any one time
- Compliance with standards such as Payment Card Industry Data Security Standards (PCI/DSS)
- Prior security incidents, claims and circumstances
- Loss history
Reach out to me when you’re considering Cyber Liability Insurance. I will discuss with you how it works and assess if it fits into your risk management needs. If you determine this coverage is needed I will then provide you with comparative Cyber Liability Insurance quotes from multiple insurance carriers so you can get the best possible rate.
As an insurance broker I help businesses throughout Oregon and the Pacific Northwest manage risk.