Cyber Security
Many businesses, store, send or receive electronic data every day. This data may include information that belongs to your business, like sales projections and tax records. It may also include data that belongs to clients/customers, employees and vendors such as accounts payable records, employee social security numbers, etc. If electronic data stored on your company’s network is lost, stolen or compromised, the cost of restoring it can be significant. Moreover, your company may be liable for damages to third parties whose data has been stolen. Expenses can also be incurred on a federal level if your business is required to inform those affected by a data breach. You can protect your business against the costs associated with data breaches by purchasing a cyber liability policy.
What are the Exposures?
- Data Security Breach
- Regulatory Proceedings
- Business Interruption & Loss of Income
- Cyber Extortion – Ransomware
- Cyber Crime – Social Engineering & Phishing
- Emerging Risks & Issues
What Does a Cyber Liability Policy Cover?
First Party Coverages
Loss or Damage to Electronic Data
Coverage for data stored on your network (company data and/or clientele data).
Loss or Damage to Electronic Data
Coverage for data stored on your network (company data and/or clientele data).
Cyber Extortion – Ransomware
Crimes involving an attack or threat of an attack against a business which includes a demand for money to avoid or stop the attack on their network.
Wire Transfer Fraud - Social Engineering
The art of manipulating people to reveal confidential information. Criminals (hackers) use these tactic as an easy point of financial exploitation.
Loss of Income or Extra Expenses
Income your business loses, and extra expenses incurred to avoid or minimize a shutdown of your business after a computer system is attacked.
Notification Costs
Coverage for the cost of notifying parties affected by a data breach by government statutes or regulations. Often, this may also include coverage for the cost of hiring an attorney to assess your business’ obligations under applicable laws & regulations.
Crisis Management / Damage to your Reputation
Some policies cover the costs a business may incur for marketing & public relations to protect the company’s reputation following a data breach.
Third-Party Coverages
Network Security Liability
Provides coverage for lawsuits against a business due to a data breach, virus or malware caused by a hacker or rogue employee. Policies may cover lawsuits alleging that your company failed to adequately protect data belonging to customers, clients, employees or other parties.
Network Security Liability
Provides coverage for lawsuits against a business due to a data breach, virus or malware caused by a hacker or rogue employee. Policies may cover lawsuits alleging that your company failed to adequately protect data belonging to customers, clients, employees or other parties.
Network Privacy Liability
Provides coverage for lawsuits based on allegations that your company failed to properly protect sensitive data stored on your computer/network system.
Electronic Media Liability
Covers lawsuits against a business for acts such as libel, slander, defamation, copyright infringement, invasion of privacy or domain name infringement.
Types of Cyber Claims
Theft of funds
This is straight forward theft of money from a company’s bank account. The fact that nearly every business can now move its money around electronically and remotely means that it is much easier to steal. Criminals no longer target physical banks – they target online accounts. And if a business has somehow been negligent in allowing this to happen, the bank will not reimburse them.
Theft of data
Data is valuable, and if something has value, it is worth stealing. Identity theft has reached record levels around the world and in order to commit identity theft, criminals need data. Seemingly innocuous information such as names and addresses stored on a computer network can be worth more money than you think.
Damage to digital assets
In order to operate, businesses now have an incredibly high dependency on their systems, and criminals know that. By either damaging or threatening to damage a firm’s digital assets, attackers know that they can extort money from their victims who might prefer to pay a ransom rather than see their business grind to a halt. And even after paying up, the victim is often left with systems that are unusable and costly to fix.
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