Cyber Liability Insurance
Cyber liability is the loss that can arise from a wide range of electronic exposures, including the theft, destruction or modification of customer information or data.
All companies have some exposure to cyber risks to one degree or another. Any business which has data on third parties or employees should consider their exposure. The more voluminous and sensitive the information, the greater the potential liability.
The risks associated with cyber threats are becoming more and more apparent with businesses experiencing threats on a daily basis.
The most common cyber threats include:
- Denial-of-service attacks
- Information extortion
- Software glitches
- Lost or stolen phones and laptops
- Privacy violations
- Rogue employees & contractors
- Employee mistakes
The extent of these threats can range from being a nuisance to a major crisis that can lead to a damaged reputation and expose your business to financial loss.
A cyber liability policy can help transfer this risk off your company’s balance sheet by offering protection for the following:
- Business Interruption Costs – the loss of income your business suffers when you are unable to trade as a result of a cyber threat.
- Cyber Extortion Threats – any payments demanded by someone threatening to disseminate, divulge or improperly use client information.
- Forensic Investigations – the costs of engaging an expert to determine the cause or extent of a cyber breach.
- Reputation Protection – the costs of engaging a public relations consultant to help protect your reputation in the event of a cyber breach.
- Replacement Costs – the costs incurred in restoring, replacing, rectifying or recreating damaged data or software programmes.
- Credit Monitoring Services – the costs in procuring credit monitoring services for parties affected by a cyber breach.
- Civil Claims – legal proceedings arising from intellectual property, trademark and copyright infringements.