What is Cyber Liability Insurance?
Cyber liability insurance is a product used to protect businesses and individual users from Internet-based risks, and more generally from risks relating to information technology infrastructure and activities. Risks of this nature are typically excluded from traditional commercial general liability policies or at least are not specifically defined in traditional insurance products.
What does it cover?
Coverage provided by cyber-insurance policies may include first-party coverage against losses such as data destruction, extortion, theft, hacking, and denial of service attacks; liability coverage indemnifying companies for losses to others caused, for example, by errors and omissions, failure of your company to safeguard data, or defamation and other benefits including regular security-audit, post-incident public relations and investigative expenses, and criminal reward funds.
Who needs a Cyber Liability policy?
The truth is, anyone that hosts a website that interacts with the public at large is a candidate for cyber liability insurance. Some examples:
- Communicate with customers via, email, text or social media
- Send or Receive documents electronically
- Advertise your Company via electronic media
- Storing your Company’s data on a computer network
- Storing data that belongs to employees or customers on a computer network