14 Jul Cyber Liability Coverage
Cyber Liability Coverage
Cyber liability is a coverage that every business needs! Here’s why…
Every organization relies on data and networked computer systems. Some businesses rely on data, systems and the internet as a primary means of conducting business. Others depend on data and systems as a support function within the organization. No organization can afford to lose important data and systems. This is why Cyber liability insurance is essential to every business.
Cyber liability insurance protects businesses against damage to electronic data and computer systems from a virus or other computer attack. It also protects a business’ liability to third parties that may have suffered damage due to security weaknesses of the business’ computer system.
Depending on the coverage options selected, Cyber liability pays for the costs to recover and replace data and to restore computer systems. It can also pay for liability, damages and defense costs due to alleged claims brought by third parties for damage due to failures in the business’ systems security.
What does Cyber Liability Limited Computer Attack Coverage do for you?
This first-party coverage is triggered by an unauthorized person gaining access to the insured’s computer system, a malware attack or a denial of service attack. It pays for data restoration from electronic sources and systems restoration costs.
We can also provide additional coverage and higher limit options:
Full Computer Attack Coverage – expands limited coverage to include additional sub-limits for the cost of Data Recreation from non-electronic sources, Business Income and Public Relations.
- Extortion coverage is available as an option to either Limited or Full Computer Attack Coverage.
- Limited Network Security Liability – this third-party coverage is triggered by a “network security liability suit”, an alternative dispute resolution proceeding or a written demand for money alleging that a negligent failure of the insured’s computer security allowed an unintended propagation of malware or a denial of service attack in which the insured unintentionally participated.
- Full Network Security Liability – expands the limited coverage to include a breach of third-party business data.
- Limited coverage is subject to a $50,000 limit with a $1,000 deductible
- Full coverage is subject to a $100,000 limit with a $1,000 deductible. Higher limits are available subject to underwriting approval.
Cyber Liability Claim Examples
- The same consequences of harmful cyber attack’s that these business owners speak of, could happen to any modern business.
“My business was hacked by a disgruntled former employee, and I ended up with a $25,000 IT bill to repair the damage..”
“A nasty virus got into our computer network, and it cost us a fortune in out-of-pocket expenses and downtime to get us back up and running..”
Network Security Liability
“I couldn’t believe how quickly the costs of defending a suit added up. We spent more than $40,000..”
“A customer claimed that I sent him a damaging virus, and it cost me $30,000 in legal fees to get it resolved..”
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