WHY YOU NEED CYBER LIABILITY COVERAGE
Cybercrime has been steadily growing in recent years with data breaches becoming a regular occurrence and impacting businesses of all sizes and industry types. If you maintain personal information of employees, customers, patients, students, vendors, volunteers or others — whether in the cloud or on a network you are at risk. Here are some basic operational computing tasks that put businesses, schools, hospitals, non-profits, and municipalities at risk of a cyber breach:

• Use email?
• Rely on networks, computers and electronic data to conduct business?
• Browse the internet or have your own website?
• Handle valuable or personal information on yours or another’s network?
• Participate in e-Commerce or take online orders?
• Use your network to control production, manufacturing, inventory or a supply chain?
• Interact or collaborate with others (clients, suppliers, partners, or the public) via the internet?
• Advertise or promote your business online, or publish digital content?

If you answered yes to any of these questions, you face a potential cyber risk and should insure against cyber liability.

CYBER EVENTS THAT CAN TRIGGER NEED FOR COVERAGE

• Lost/stolen portable computers, media, back-up
• Computer hacking
• Employee misuse/mistake
• Computer/application glitch
• Vendor negligence
• Improper disposal of paper records or computer equipment

SENSITIVE PERSONAL DATA COMPROMISED BY DATA BREACHES

• Credit card information
• Personal financial information
• Personal health information
• Business information of others
• Confidential customer data

TYPICAL ALLEGATIONS AND COST OF DATA BREACH

• Failure to protect customer information/privacy
• Failure to notify or timely notification
• Cost to cancel or reissue payment cards/open new accounts
• Costs of fraudulent purchase
• Cost of credit monitoring
• Regulatory Actions – penalties & fines

WHAT THE CYBER LIABILITY COVERAGE PROVIDES
Your cyber liability policy can be tailored to include:

• Third-party liability insurance coverage in response to the unauthorized access, theft of or destruction of data, denial of service attacks and virus transmission.
• Theft of personally identifiable non-public information.
• Liability arising from failure to comply with state breach notice laws.
• Privacy breach notification costs and credit monitoring services.
• Defense costs for regulatory proceedings and penalties resulting from privacy incidents when allowable by law.
• First party coverage including coverage for destruction and loss of data, as well as network business interruption and cyber extortion.

I HAVE ADDITIONAL QUESTIONS; WHERE CAN I GET MORE INFORMATION?

For more information about Cyber Liability Insurance, please visit our Cyber Risk Insurance Coverage FAQs page. You may also contact one of our Risk Advisors today at 516-683-6100.