Do I need Cyber Liability Insurance?
What is cyber liability insurance?
Cyber liability insurance (CLI) is an innovative kind of insurance uniquely suited to address the digital era we live in, and the increasing risks and exposures confronted daily by businesses, which operateonline or maintain sensitive client and customer data on their computer operating systems.
Does my general liability insurance cover cyber liability risks and exposures? Most do not provide any coverage for these exposures. While some business policies include limited cyber liability coverage, it is usually insufficient to provide adequate/comprehensive protection.
What types of businesses need CLI? Any business which operates a website, conducts transactions online, or stores personally identifiable information of its customers, clients and employees, such as birth dates, Social Security numbers, credit card numbers and bank account information.
Is my business liable if there is a security breach of our network? Yes. Your business has a legal obligation to protect the confidential and personal information of your customers, clients and employees, which is stored on your network. Even if you hire a third party to provide protection and security, you remain liable.
Is accepting online payment by credit card a cyber liability threat? Yes. Storing credit card information on your computer network creates exposure, as it is subject to being either lost or stolen.
If a laptop or flash drive with personal/confidential information is lost or stolen, is my business liable? Yes. It is your responsibility to store customer, client and employee data securely.
Don’t think you need cyber liability coverage? Think again.
- 62% of all reported data breaches were with small to mid-size businesses
- One in five small businesses falls victim to cyber crime each year
- 60% go out of business within 6 months of an attack
- Average cost of the attack was $188,242
Talk to your independent agent about your cyber security insurance needs.