Security breaches seem to be in the news on almost a daily basis.
Just recently, a worker went to a local bar with a thumb drive of his employer’s sensitive customer information in his pocket.
When he left the bar, he left behind that thumb drive, leaving that sensitive information at risk.
In today’s technological age, small to midsize businesses with websites and computer networks that are conducting business across the Internet are at risk of having information compromised.
The insurance industry has responded to the problem by offering cyber-liability insurance to business owners.
First- and third-party coverage is typically provided.
First-party coverage deals with the losses due to a breach of security or privacy caused by an employee.
Coverage may also be provided to notify customers and handle public relations after an event has occurred.
Third-party coverage would deal with losses due to an outside element breaking into computer networks.
Cyber extortion or cyber terrorism – like a threat to initiate a virus if a demand is not met – may also be covered in a cyber-liability policy.
Each insurance carrier has its own type of cyber-liability program. Your agent can help you determine how much coverage you may need and which carrier offers the best plan to meet those needs.