Cyber Liability

Protect your business from hacks, cyber-attacks and other online threats.

It doesn’t matter what type of business you own or manage; anyone is vulnerable to cyberattacks. Many businesses large or small operate their business online and face the possibility of a risk. If your business uses a computer to send, receive, or store electronic data, such as sales projections, tax records, personal information and other information owned by your business, you are at risk.
Cyber-insurance protects businesses, and individuals from financial losses that result from data breaches, viruses, or other cybercrimes. If the data is lost, stolen or damaged due to a security breach, it could be expensive to replace or restore. A data breach could cost your company’s reputation as well as put your customers and employees at risk.
Data breach insurance provides protection for small business owners in helping your business respond to breaches. If data is lost or compromised by a hacker, your company could be sued for damages. Your company could also incur substantial notification expenses. Purchasing cyber liability insurance will help protect your business against the cost associated with data breaches.

What is Cyber Liability Insurance
Cyber liability insurance is a type of insurance designed to cover businesses that use technology services or products. It mitigates risk exposure by covering a variety of losses that result from a security breach or a cybercrime.

In recent years, data breach and other cybercrimes have become way to common. The risks of cybercrimes are growing rapidly, with new risks evolving as technology progresses and new regulations are put in place. By adding cyber liability insurance to your business insurance policy, you can protect against those risks. Cyber liability insurance can offer comprehensive coverage that helps protect your business from those technology-related risks.

Will My General Liability Policy Cover Cyber Liability

General liability insurance covers bodily injuries and property damage resulting from your products, services, or operations. Cyber insurance is often excluded from a general liability policy.

First Party Coverage

Here is some first-party coverage you will find in a cyber liability policy. These coverages may be subject to a deductible.
• Loss or Damage to Electronic Data – Covers the cost to replace or restore electronic data or programs damaged, destroyed, or stolen in a data breach, whether the data belongs to your firm or someone else.
• Loss of Income and Extra Expenses – Covers income losses you suffer and extra expenses you incur to avoid or minimize a closure of your business after your computer system fails due a covered peril.
• Cyber Extortion – Applies when a hacker breaks into your computer system and threatens to commit a nefarious act like damaging your data, introducing a virus, initiating a denial of service attack, or releasing confidential data unless you pay a specified sum.
• Notification Costs – Covers the cost of notifying parties (voluntarily or as required by law) affected by a data breach. May also cover the cost of providing credit monitoring services and establishing a call center.
• Damage to Your Reputation – Some policies cover costs you incur for marketing and public relations to protect your company’s reputation following a data breach. This coverage may be called Crisis Management.

Third Party Liability Coverage
The liability coverages provided by a cyber policy are usually claims-made. Coverage normally applies to damages or settlements that result from covered claims as well as the cost of your defense. Note that defense costs may reduce the limit of insurance.
Network Security and Privacy Liability – Covers claims against your business for negligent acts, errors or omissions that result in a denial of service attack, unauthorized access, introduction of a virus, or other security breach of your computer system. It also covers claims alleging you failed to properly protect sensitive data stored on your computer system. The data may belong to customers, clients, employees, or other parties.
Electronic Media Liability insurance lawsuits against you for acts like libel, slander, defamation, copyright infringement, invasion of privacy or domain name infringement.
Regulatory Proceedings – Covers fines or penalties imposed on your business by regulatory agencies that manage data breach laws. It also covers the cost of hiring an attorney to assist in your response to a regulatory proceeding.

Want to obtain a cyber liability insurance policy for your business? Contact us, we’re ready to help!

Allow Lancaster Insurance Center to help you choose a policy that will fit your business needs. Our goal is to help you protect what matters most by protecting your assets, whether business, personal, or both. A well-chosen policy can lessen the impact of some of life’s most common, yet unforeseen perils.

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What Does Cyber Liability Cover

Most cyber policies include both first-party and third-party coverages. Some coverages may be included automatically while others are available “a la carte.”

First-party coverage pays expenses that incur because of a breach, such as the cost of notifying your customers concerning a hacker attack. Third party coverages pertain to claims against your business by people or companies that have been injured because of your actions or failure to act.

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