Cyber Liability Insurance

As technology becomes increasingly important for modern business operations, the value of a strong Cyber Liability Insurance policy will only continue to grow. The continued rise in the amount of information stored and transferred electronically has resulted in a vast increase in the potential exposures facing businesses. In an age where a lost laptop or hacked account can compromise the personal data of thousands of customers, protecting yourself from cyber liabilities is just as important as some of the more traditional exposures.

Why Cyber Liability Insurance?
A traditional commercial insurance policy is extremely unlikely to protect against most cyber exposures. Standard commercial policies are written to insure against injury or loss and will do little, if anything, to shield you from electronic damages and the associated costs they may incur. Awareness of the potential cyber exposures your company faces is essential to managing these risks.

Possible exposures covered by a typical cyber policy may include:

Data breaches – Increased online consumer spending has placed more responsibility on companies to protect clients’ personal information. Loss of sensitive personal or financial information may subject you to fines and sanctions from the Information Commissioner.

Business/Network Interruption – If your primary business requires the use of computer systems, an insured event that ceases your ability to use such systems could cause you or a third party that depends on your services, to lose potential revenue. Time and resources that normally would have gone elsewhere will need to be directed towards the problem which could result in further losses. This is especially important as denial of service attacks by hackers have been on the rise. Such attacks block access to certain websites by overloading an organisation’s server causing the website to crash.

Intellectual property rights – Your company’s online presence, whether it be through a website, blog or social media, opens you up to some of the same exposures faced by publishers. This can include libel, copyright or trademark infringement and defamation, among other things

Damages to a third-party system – If an email sent from your server has a virus that crashes the system of a customer or the software your company distributes fails, resulting in a loss for a third party, you could be held liable for the damages.

System Failure – A natural disaster, malicious activity or fire could all cause physical damages that could result in data or code loss.

Cyber Extortion – Hackers can hijack websites, networks and stored data, denying access to you or your customers and will often demand money to restore your systems to working order. This can cause a temporary loss of revenue plus costs associated with paying the hacker’s demands.

Cyber Liability Insurance is specifically designed to address the risks that come with using modern technologies; risks that other types of business cover will not. The level of cover your business needs can vary depending on your range of operations and subsequently, exposure. It is extremely important to identify your areas of risk so a policy can be tailored to fit your unique needs. Brownhill Insurance Group is here to help you analyse those needs and make the right cover decisions to protect your operations from unnecessary risk.