Do I Need Cyber Liability?

Here are some questions to ask yourself to determine if you need Cyber Liability:

1.) What would happen if private information from your employees or clients that was entrusted to you was stolen?  (Reputation, loss of customers, lawsuits, money)

2.) How many paper and electronic records do you have stored?

3.)  What social media are you using? Consider issues with copyright, trademark, defamation, slander, invasion of privacy.

4.) Are you aware that cyber liability is excluded from your general liability policy?

5.) Are you aware that the average first party cost for a claim in $73/record?  This includes notifying those affected, monitoring their credit, PR, and call centers.

6.) Are you aware of the notification requirements in the event that there is a privacy breach?

7.) Are your employees accessing your systems via a mobile device?

Cyber Liability is a very important policy that does not cost as much as you may think.  Contact us to get a quote

Cyber Liability – What’s That?

Check this out: One of your employees sends an email to a customer informing them of a new service or product and includes an attachment of a highlight sheet featuring the service/product. As a result of opening up the attachment, the customer’s computer contracts a virus and the black screen of death renders the computer useless, and the repair bill is substantial. Does your liability coverage offer protection protect against that loss? 

No two insurance policies are exactly alike. Additionally, professional services are rapidly evolving in complex ways that require a new way of looking at Errors & Omissions protection.

One of the emerging trends facing professionals comes from professional service providers’ increased reliance on technology to deliver services, and to coordinate the activities of a multitude of different entities participating in complex transactions. Professionals today are likely to use websites, e-mail, social marketing tools, cell phones, Internet conferencing and other electronic tools to deliver their services to customers. This opens the door to liability in three areas:

· Breach of confidentiality. Material may be inadvertently posted on websites, fall into the hands of hackers or be exposed when a laptop is stolen.

· Failure to control access. Customers or third parties who have a legitimate need to access a service online may suffer damages if they are denied access to the professional’s network or website.

· Transmission of malicious code. E-mail may carry viruses and other material that infect a customer’s computer and cause costly damages.

To solve these problems, good professional liability policies should evolve in step with these trends.  First, make sure that the policy definition of your professional services is written broadly enough to include all of the services that your operation performs. Second, check for inclusion of cyber-liability protection in professional liability and/or general liability policies. If it is missing, check with your agent  separate coverage.   Work closely with your insurance professional on these issues so they understand the world in which your business operates and they are able to suggest and provide proper risk management solutions.