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Cyber Liability

What is Cyber Liability Insurance?

Businesses are being transformed by technology and the internet. As businesses continue utilizing new technology-based processes, they may not be aware of the emerging risks that could potentially threaten their bottom line. The Internet has given rise to a whole new host of liability exposures where anyone with a web site now has additional legal liabilities to be concerned about. Creating a Web site is simple in comparison to the exposures that come along with having one. Companies that venture onto the World Wide Web face liability exposures that are emerging, evolving, and complex.

Consider the following scenarios:

  • External hackers gain access to your computer system and steal credit card information, SSN’s, or bank account information
  • An internal employee mistakenly posts the names, addresses and SSN’s of your customers on the company homepage
  • One of your employees inadvertently passes along a virus or other type of malware
  • A rogue employee posting on a blog, social media page or discussion forum can make your company liable for slander or defamation

These are just a few examples of where your business could be exposed. Although your business may have a general liability insurance policy to protect for bodily injury or property damage claims, traditional liability policies do not address internet exposures and the risks involved with internet business. 

Cyber liability insurance can be tailored to the needs of your business. Cyber liability insurance policies may include:

  • Coverage for any negligent act, error or omission by an Insured that results in the improper dissemination of Nonpublic Personal Information (NPI) due to the Unauthorized Access or Unauthorized Use of an Insured’s Computer System.
  • Coverage for any negligent act, error or omission by the Insured resulting in the Unauthorized Access or Unauthorized Use of the Computer System
  • Coverage for any negligent act, error or omission resulting in the wrongful publication, defamation, slander or libel, product disparagement or other tort related to disparagement or harm to the reputation or character of any person or Organization in the Insureds Electronic Content or Advertising 

Businesses that get drawn into claims often have to deal with crisis management, so a cyber liability policy may also extend supplemental coverage for costs incurred in connection with a Data Privacy Wrongful Act to pay for a public relations firm, law firm or crisis management firm to maintain and/or restore confidence in the Insured. 

The Internet is here to stay. Many experts believe cyber liability insurance will become the norm for businesses, along with other common insurance types, such as property, general liability and workers compensation insurance. Contact us today to discuss.

Located in Torrance, California, ISU-The Olson Duncan Agency was originally established in 1945. We do not work for an insurance company; we work for you. We represent a carefully selected group of financially sound, reputable insurance companies, and we place your policy with the company offering the best coverage at a competitive price.

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