CYBER LIABILITY INSURANCE
drives should consider taking out a good
cyber liability insurance policy.
CYBER LIABILITY INSURANCE IS FOR
BUSINESSES OF ANY SIZE
Cyber liability insurance can be just as
useful for that small business down the
street as it is for that large corporation
located downtown. The policy can be
tailored to meet the specific needs of
each company and may include one or
more of the following types of insurance
coverage:
•
privacy penalties
• cyber terrorism
• extortion
• protection of network assets
• security and privacy liability
• security breach response costs
• audit or regulatory claim expenses
YOUR BUSINESS INSURANCE POLICY
MAY NOT PROVIDE ADEQUATE
COVERAGE FOR CYBER THREATS
While you may already have a general
liability insurance policy for your
business, you should be aware that most
of these policies designed for businesses
do not provide coverage for any type
of cyber-related risks or exposures.
Although there are some business
insurance plans that have limited cyber
liability coverage, they will not offer the
same level of coverage that you would
receive from an actual cyber liability
insurance plan.
THE TYPE OF BUSINESSES THAT
SHOULD HAVE CYBER LIABILITY
INSURANCE COVERAGE
Any business that conducts transactions
online involving sensitive data such
as credit card numbers, bank account
information, social insurance numbers,
addresses, and other important data
should have some sort of cyber liability
insurance in place. At one time, the type
of businesses who needed CLI policies
was limited. However, today it is hard to
find a business that couldn’t benefit from
this type of policy.
ANY COMPANY THAT DEALS WITH
SENSITIVE CLIENT INFORMATION AND
STORES THESE DETAILS ON THEIR
HARD DRIVES SHOULD CONSIDER
TAKING OUT A GOOD CYBER LIABILITY
INSURANCE POLICY.
YOUR COMPANY IS RESPONSIBLE
FOR PROTECTING YOUR CLIENTS'
SENSITIVE INFORMATION
If you store information about your
clients or customers on your network,
you have a legal responsibility to them
to ensure that their personal details
are always kept safe. This also includes
information about your employees that
may be stored on your company network.
There are third-party businesses that
can provide protection against threats
to your company’s sensitive information.
However, you can still be held liable for
a security breach in your network even if
you have hired one of these companies.
CYBER LIABILITY INSURANCE
COVERAGE CAN HELP WITH
DOWNTIME FOR YOUR BUSINESS DUE
TO A VIRUS
If your company experiences a virus that
causes a complete wipe of your system
leaving you with nothing to work with
afterwards, you will need insurance
coverage to help you recover from this
severe type of damage. A good CLI
policy can also provide protection if your
company accidentally sends a virus to a
customer or a business partner.
CLI POLICIES CAN PROTECT AGAINST
EXPOSURE TO SENSITIVE MATERIAL
If you store customer credit card
information on your servers for
automatic payments, your company
needs to have access to some type of
cyber liability insurance plan. Storing
this type of sensitive information on
your network can create exposure and
puts the data at a high risk of being lost
or stolen. Any company that accepts
payment by credit card online is at risk of
a potential cyber threat in the future.
STORING INFORMATION ON A
PORTABLE DEVICE CAN ALSO PUT
YOUR COMPANY AT RISK
If you store vital information on a laptop,
external hard drive, or any other type
of portable device, you are putting your
company, your clients or customers, and
your employees at a high risk of having
their identities stolen. And if that wasn’t
bad enough, your company will also be
held liable for these thefts if they occur.
It is your responsibility to store your
customer and employee information
securely. If you are unsure about the
level of security that you have for this
information, you should think about
taking out a cyber liability insurance
policy as soon as possible.
Keep in mind that every cyber liability
insurance plan is different, so you will
need to find out what type of coverage
you are paying for and if you require any
additional coverage to keep your business
safe.
Even if you have hired a third-party
company to protect your network and
sensitive data, you could still be held
liable for any type of security breach that
occurs within your company or with the
third-party company. That is why it is so
important for all businesses to purchase
a cyber liability insurance plan today!
This will help to guarantee that you
have the coverage needed to take care of
any risks or threats that may be on the
horizon.
29