Do most businesses need cyber liability coverage?
Every business has a cyber liability exposure to some degree. Those businesses in the retail industry or trading in e-commerce are the obvious targets for cyber attack and data breaches related to the storage of credit card information.
However, any business that stores personally identifiable information, such as social security numbers and dates of birth are also at risk for a data breach.
A costly component to recover from a data breach includes notification expenses and credit monitoring for each affected person, both of which are mandated in most states currently. In addition, any business that has a website could face lawsuits arising from the content of the website, such as lawsuits alleging trademark or copyright infringement.
Loss of income or business interruption is also a cyber concern when it comes to failure of network security and the suspension of operations resulting from virus and hacking.
How do the latest news stories about cyber attacks and data breaches relate to my business?
Cyber Liability and Data Breach insurance has been on the forefront in the world of insurance, especially after the latest data breach involving Target Corporation. The coverage is widely available and almost all business have a cyber exposure—it is not exclusive to technology firms. Do you hold personally identifiable information of employees and clients, i.e., social security numbers, dates of birth, credit card numbers, whether it be in electronic or paper form? If you do, you are subject to a data breach, which could be costly to your business.
What do I need to know about cyber liability coverage for my business?
Cyber liability is a fast emerging area, but the coverage and policy forms are completely non-standardized. Unless your broker understands your unique exposures as compared with the policy coverages, you could be buying a lot of empty promises – and not receiving the coverage you need in the event of a claim.
No two policies are alike. Terms, conditions and exclusions vary widely. That’s where our expertise and experience at Meeker Sharkey & Hurley comes into play.