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Cyber Liability

Cyber liability Insurance addresses the first-party and third-party risks associated with e-business, the internet, networks, and information assets which are not covered by traditional general liability insurance policies.

When a corporate network, connected to the outside world, becomes compromised, the resulting damage can be tremendous. In today’s networking world, damages and security breaches to one computer can potentially lead to meaningful financial losses throughout an entire networking community.

 

The company’s networks carry a unique loss potential. The potential exists for hackers/crackers, viruses and malicious code to cause damage throughout the entire virtual enterprise. The damage to computer systems can also have a dramatic impact on each of your corporate stakeholders.

 

A company can experience direct damage (First Party) or liability claims (Third Party). In either case, the security breach in your system may cause untold damage to others linked to your system who depend on your stability.

 

If your system becomes the point of compromise, you have a responsibility to protect your stakeholders and customers at all costs.

1. How do I decide upon coverage for Cyber Liability?

Cyber Liability policies can be tailored to your organizations specific exposure, the coverage would include one or more of the following:

 

Third-party liability coverage for:

  • Disclose injury, including lawsuits alleging unauthorized access to or dissemination of your organization’s private information
  • Content injury, including suits arising from intellectual property infringement, trademark infringement, and copyright infringement
  • Reputational injury, including suits alleging disparagement of products or services, libel, slander, defamation, and invasion of privacy
  • Conduit injury, including suits arising from system security failures that result in harm to third-party systems
  • Denial of service, including suits arising from system security failure resulting in your customer’s systems being unavailable to its customers

First-party crime expense for:

  • Privacy notification expenses, including the cost of credit-monitoring services for affected customers, even when state law doesn’t require notification
  • Crisis management and reward expenses, including the cost of public relations consultants
  • E-business interruption, covers the loss of income due to a network intrusion and/or other computer event that makes the network inaccessible or operates slowly
  • E-theft and E-communication loss, extended to networks outside your company’s system
  • E-threat expense, covers the cost of a professional negotiator and ransom payment
  • E-vandalism expense, covers expenses incurred due to vandalism even if caused by an employee

No two forms are alike as numerous insurance carriers provide this coverage. Contact us to assist you with determining what coverage will meet your organizations needs.