Take a look around you, wherever you are. Whether you’re walking around the mall, enjoying lunch at your favorite café, or sitting at your work desk. It is obvious how digital our world has become in every aspect of our lives. Our devices have become our lifelines. They have become especially essential in supporting the daily operations for the majority of businesses. As the digital era arises and evolves, the amount of exposure and risk rises; meaning, the need for Cyber Liability Insurance increases as well.
Cyber Liability Insurance (CLI) has only come to the forefront of businesses’ needs in recent years. The digital era is only gaining momentum, so it is crucial business owners start taking action to protect their organizations and their data. So, if you are a business owner, here are some frequently asked questions to help you decide if CLI may be right for your business.
- What is cyber liability insurance? – CLI is a flexible type of insurance coverage. It helps protect businesses from the increased risks and exposures that are regularly faced when they operate online or store sensitive customer data.
- Can a CLI policy be tailored to meet my company’s specific needs? – Yes! Absolutely. You can customize your policy with one or more of these possible CLI coverages:
- Security and privacy liability
- Privacy breach response costs, customer notification and support, and credit monitoring expense
- Privacy regulatory defense and penalties
- Regulatory claim and audit expenses
- Cyber terrorism and cyber extortion
- Multimedia liability
- Network asset protection.
- Does my general liability insurance cover cyber liability risks and exposures? – Unfortunately, most general liability policies do not. The coverage is typically minimal and insufficient at providing adequate digital protection.
- What types of businesses need CLI? – We highly recommend CLI if your business operates a website, conducts online transactions, or stores identifiable information of your customers or employees. This sensitive information includes birth dates, credit card numbers, Social Security Numbers, or bank account information.
- Is my business liable if there is a security breach of our network? – Yes. Even if you hire a third party to provide protection and security, as a business, you have a legal obligation to protect any confidential and personal information you store.
- Does CLI cover computer viruses? – Though each policy is different, CLI can provide coverage for business interruption due to a virus or if you accidentally transmit a virus to a third party.
- Is accepting online payment by credit card a cyber liability threat? – Yes, storing this type of information on your network creates exposure since it is subject to being either lost or stolen.
You can never be too safe in a digital world. Contact our professionals at Avery Hall Insurance if you are interested in Cyber Liability options available to you or would like to learn more. We are here to help you make the best and most informed decisions for your business.