All businesses are at risk for a cyber attack or a data breach. The type of company doesn’t matter, nor does the size of your business. Even small businesses aren’t safe. The digital world might have created amazing breakthroughs and innovations in technology and business, but it also allowed thieves more ways to wreak havoc.
A cyber liability insurance policy helps protect your company from the inevitable.
What Cyber Liability Insurance Covers
According to a 2015 Symantec Internet Security Threat Report, of the companies who are attacked, 41 percent are large companies; 25 percent are medium companies; and 34 percent are small businesses.
Your business faces the same potential threat as every other business. Lost thumb drives, stolen laptops, and hacks of your website contribute to your liability. Not every threat you face comes from an unknown source or outside attack; sometimes bad acts (unintentional or not) by yourself or employees open you up to potential liability. Here are the common cyber liabilities you need to be aware of:
- Unauthorized access to data and information
- Not notifying people of a data breach when it’s required by law
- Transmission of computer virus from your own equipment or websites
- Not providing authorized users with access to your website
- Electronic content problems including copyright infringement, plagiarism, defamation, libel, and slander
Buy the Right Cyber Liability Insurance Policy
Not all cyber liability insurance policies are created equal. The most basic policy you choose should cover figuring out what happened and how bad it is, as well as helping you notify everyone in your database about the breach. Talk with your independent insurance agent to find a cyber liability insurance policy that can help you fix the problem and get back up and running as soon as possible. Other options for your policy include:
- Public relations costs to deal with the negative publicity from the breach or attack
- Reimbursement for fraudulent expenses
- Help paying for a call center to handle inquiries and questions from victims of the breach/attack
- Restoring lost data caused by system damage from a computer virus or unauthorized access
- Lost/stolen money, securities, and other property caused by unauthorized access
- Loss of money or securities from fraudulent transfer instructions sent to a financial institution like a bank or credit union
- E-commerce extortion which can include money paid because of specific threats:
- Destroy data and information
- Introduce a virus
- Attack a system
- Disclose customer information electronically
- Fraudulently transfer funds
- Loss of income after a computer system disruption due to a virus or attack
- Expenses to restore your business operations after a computer system disruption due to a virus or attack
Whether you only have a single computer that stores company data or your entire business is in the cloud, you’re vulnerable to a data breach or cyber attack. It’s not just about the way you run your business. Your online activity to promote your business can result in liability claims, as well. From the pictures you post on Facebook to the emails you send out to customers, your electronic content is also subject to liability claims.
Protect your business from all sides with a cyber liability insurance policy from Charlotte Insurance. As an independent insurance agent, we have access to multiple insurance products and can find the best policy for your business and budget. Don’t go it alone. Team up with us and the right coverage to protect you, no matter what happens.