Cyber Liability2018-01-08T14:55:19+00:00

Preparing for a new age of threats

As technology becomes increasingly important for successful business operations, the value of a strong cyber liability insurance policy will only continue to grow. The continued rise in the amount of information stored and transferred electronically has resulted in a remarkable increase in the potential risks and exposures facing businesses.

In an age where a stolen laptop or hacked account can instantly compromise the personal data of thousands of customers, or an ill-advised post on a social media site can be read by hundreds in a matter of minutes, protecting yourself from cyber liability is just as important as some of the more traditional exposures businesses account for in their general commercial liability policies.

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What does Cyber Liability Insurance Cover

A traditional General Liability or Professional Liability policy is extremely unlikely to protect against most cyber exposures. Standard commercial insurance policies are written to protect against injury or physical loss and will do little, if anything, to shield you from electronic damages and the costs incurred in rectifying any exposures. Exposure risks are vast, ranging from the content on your website to stored customer data. Awareness of the potential cyber liabilities your company faces is essential to managing risk through selecting the proper coverage.

Frequently Asked Questions

Increased government regulations and court rulings have placed more responsibility on companies to protect clients’ personal information. In the event of a breach, notification of the affected parties is now required by law. This adds to costs that will also include security fixes, identity theft protection for the affected and protection from possible legal action. While companies operating online are at a heightened risk, even companies that don’t transmit personal data over the internet, but still store it in electronic form, could be susceptible to breaches through data lost to unauthorized employee access or hardware theft.

If an email sent from your server has a virus that crashes the system of a customer, or the software your company distributes fails, resulting in a loss for a third party, you could be held liable for the damages. This type of situation would not be covered under your General Liability or Professional Liability policies.

Hackers can hijack websites, networks and stored data, denying access to you or your customers. They often demand money to restore your systems to working order. This can cause a temporary loss of revenue plus generate costs associated with paying the hacker’s demands or rebuilding if damage is done. Consider these types of attacks while building your cyber insurance policy.

If your primary business operations require the use of computer systems, a disaster that cripples your ability to transmit data could cause you, or a third party that depends on your services, to lose potential revenue. From a server failure to a data breach, such an incident can affect your day-to-day operations. Time and resources that normally would have gone elsewhere will need to be directed towards the problem, which could result in further losses. This is especially important as denial of service attacks by hackers have been on the rise. Such attacks block access to certain websites by either rerouting traffic to a different site or overloading an organizations server.

We offer many other insurance products

Acumen Solutions Group offers additional types of insurance products to meet the needs of your business. We understand the insurance needs of specialized industries and build our programs to fit your individual situation.

Related Products

In addition to cyber liability protection, you may consider building a more comprehensive program including other insurance products for your business and assets.

general liability insurance policy

General Liability
Insurance

Coverage to protect from claims including; bodily injury, property damage, personal injury and other claims that can arise from business operations.

professional liability insurance policies

Professional Liability
Insurance

Protection for professional service-providers from the cost of defending a negligence claim, and any damages awarded in a civil lawsuit.

Officer & Director insurance policies

Directors & Officers
Insurance

Policy providing comprehensive coverage for “wrongful acts”, such as an error, omission, misleading statement, or neglect of a director or officer.

Cyber crime liability insurance

Crime
Liability

Policy to cover crimes against your business including theft of merchandise, supplies, raw materials, finished products or other assets.