What is Cyber Liability Insurance and What Does it Cover?
Cyber Liability Insurance
Technology is used in business on a daily basis to store, send, and receive electronic data. This data can be time-sensitive and often contains confidential data related to sales, taxes, and information about customers, employees, and clients.
Cyber liability insurance covers financial losses that result from data breaches and other cyber events and typically include various property and crime coverages. Specific businesses may want to add cyber-terrorism, computer fraud, and other crimes coverages to their policies. The type of business you run may require different coverages. For example, a financial institution may have various potential breaches than a hospital would.
A business will never want to have customer’s payment options or social security numbers lost or stolen. Having sensitive and confidential information stolen can cost a lot to restore, and your business may be held liable for damages to those the data was stolen from.
Protect your business from data breaches by investing in a cyber liability policy.
First and Third Party Coverages
Cyber liability policies include both first and third party coverages. If your company sustains a direct loss, such as damages to the electronic filing system, first-party coverage will apply. Third-party coverages would apply to claims submitted against your business, by those who experienced losses from a breach.
First-party coverage is typically subject to a deductible and applies to damages that result from claims and covers the cost of defending your business against these types of claims.
Loss or Damage to Electronic Data – Covers losses caused by damage or theft of your business’ electronic data caused by a hacker or virus.
Loss of Income – Covers income you lose if you incur a shutdown due to a hacker or breach.
Ransom Attacks – Covers expenses you incur when responding to an extortion demand. A cyber thief may shut down your computer unless you pay a sum of money.
Crisis Management – A data breach can severely damage your firm’s reputation. Thus, some policies cover the costs you incur for marketing and public relations to protect your company’s reputation following a data breach.
Third-Party Liability Coverages
Third-party coverage applies to damages that result from claims and covers the cost of defending your business against these types of claims.
Network Security – This coverage will protect your business against data breaches and protect you if it is alleged you failed to protect data belonging to customers, clients, or employees.
Network Privacy – This coverage will protect your business if it is alleged you failed to protect sensitive data on your computer network.
Electronic Media – This coverage will protect your business against libel, slander, defamation, copyright and domain infringement if these were a result of your business publishing data on the internet.
Jacobs Insurance Agency
Jacobs Insurance Agency offers a broad range of coverage and works with many insurance agencies and can provide quotes from different companies to create a cyber liability package with proper coverage at a great price. Price is important, however, Jacobs Insurance Agency can determine the proper amount of coverage needed for your business and select the option that will save the most money. Using Jacobs Insurance Agency ensures you are protected by the best.
Jacobs Insurance Agency is an independent agency specializing in homeowners, auto (including motorcycle and RV), boat, umbrella, and commercial insurance. With over 30 years’ experience in the South Florida area, our specialty is designing a tailored program of coverage to fill your unique insurance needs: whether personal, commercial, or both. Our passion is providing top-notch service and peace of mind to our clients, and we thank you for allowing us to serve you. Call us at 561-967-8400 or visit our website.
Jacob’s Insurance Agency
2328 S. Congress Avenue, Suite 2A
West Palm Beach, FL 33406
Main Phone: 561-967-8400 ext. 102
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