Having cyber liability is important. This is especially true as it addresses the first party and third party risks that are associated with e-business, the internet, networks, and any informational assets. The risk category for cyber insurance includes privacy issues, infringement of intellectual property, virus transmission, or any other series issues that pass from first to third parties via the web and internet. Cyber insurance policies will depend on a company’s size and the industry in which it operates, how much data it has and what a company already does to secure it. Among the expenses a policy might cover: the cost of conducting an investigation into a breach, notifying customers, representational and crisis management, lost business, and the cost of credit monitoring.
When you Need Cyber Insurance
If you create a website, it may seem simple enough, but make sure to know the exposure that will come along with it. If a privately owned company is on the web, it may face liability exposure. This may be exposure that is evolving, emerging, and even complex. Like publishers, commercial companies that publish information to the public online, face the same legal exposure. However, many have little or no concept of the resulting legal responsibilities. Areas of user privacy and domain name infringement still continue to create potential liabilities online. Cyber coverage can mean different things to different people. Most commonly, cyber coverage is some combination of four components: Errors and omissions, media liability, network security, and privacy. Errors and omissions cover claims arising from errors in the performance of your services. This can include technology services, like software and consulting, or more traditional professional services like lawyers, doctors, architects and engineers. Media liability are advertising injury claims such as infringement of intellectual property, copyright or trademark infringement and libel and slander. Due to the Internet presence of businesses today, technology companies have seen this coverage migrate from their general liability policy to being bundled into a media component in a cyber policy. Network security covers failure of network security can lead to many different exposures, including a consumer data breach, destruction of data, virus transmission and cyber extortion. Privacy does not have to involve a network security failure. It can be a breach of physical records, such as files tossed in a dumpster, a lost laptop, or sending a file full of customer account information to the wrong email address.
Why Cyber Insurance is Needed
Commercial businesses now have the same exposure as publishers because they post the information on the websites. These include conventional publishing exposures such as copyright infringement, defamation and invasion of privacy, as well as emerging exposures related to operating on the web. If there is potential legal action from just one of the plaintiffs, it could be costly. For a company operating today, the computer network will more than likely provide internal and external email. If you have your own website, make sure that every thing is legal on it. Providing information about your company, the products that you sell, and services with even the possibility of an e-commerce.