Can your liability insurance hack it?

Can your liability insurance hack it?

We are very careful to abide by the privacy laws.  But what if someone hacks into our computer and steals our client’s information, are we liable?

The short answer is yes.  Even small businesses that just use email and don’t have a website are at risk of having a cyber and privacy liability claim.  Protect your business with Cyber and Privacy Liability Insurance. Cyber Liability Insurance addresses the first and third-party risks associated with e-business and the Internet. This coverage offers protection for exposures arising out of Internet communications. Theft of information by computer hackers causes many claims. According to the most recent Verizon annual study, the cost per record of a data breach in 2009 reached $204; for a relatively modest 1,000 records, that's $204,000.  The report noted that the largest number of cyber-attacks was launched against retailers, followed by financial institutions, then members of the food and beverage industry. Those three sectors combined totaled 75% of all cyber-attacks.  SO what exactly does it cover and why do you need it?  Here are just a few examples of recent claims:

  • Denial of service by hacker
  • User posts libelous material on a bulletin board
  • Webmaster uses another site's content in site development
  • Theft of client's credit card numbers
  • Another party's unauthorized use of your on-line content
  • Introduction of a virus into a client's system
  • Inadvertent release of client's confidential information i.e. social security number, date of birth etc.
  • Theft of product designs
  • Extortion
  • Web site design that does not function correctly
  • Employee makes derogatory comments about a competitor

Cyber Liability Insurance is easily tailored to the needs of your business; whether you're more concerned with network security, privacy issues, crisis management, technology errors and omissions or media and intellectual property issues.  Cyber Liability Insurance is the best way to properly protect not only you and your business, but also your clients - they rely on you and trust that you will keep their information safe.  Although you cannot prevent all cyber-attacks you can be certain that the process to resolve the issue is quick and thorough with Cyber Liability Insurance.

If you have questions about Cyber Liability, please be sure to contact us via email at or via phone at 877-352-2121.

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