Cyber Liability Insurance protects your business from the costs of a data breach or malicious software attacks. All it takes is one stolen laptop, one resourceful hacker, or one employee to cause a data breach with enormous consequences to your business. If your organization handles or stores customer or employee information, you are at risk for a privacy breach. The risk grows if you store the information electronically, or routinely deal with credit cards, social insurance numbers and other sensitive information.

Every system upgrade, every remote device, and every incoming email can mean a new risk to your customers’ data and even electronic theft of their funds. And the risks are not only financial, they can also negatively impact your customers’ reputation and your reputation.

I have Commercial General Liability (CGL) Insurance. Am I covered?

A CGL policy covers bodily injury and property damage from your products, services or operations. Cyber Liability is generally excluded from CGL policies and many other policies including home and auto.

What does cyber insurance cover?

• legal fees and expenses
• notifying customers about the breach
• helping affected customers regain their identities
• recovering compromised data
• repairing damaged systems

Cyber Liability Insurance Claims Examples

Here are some examples of the types of losses that would be covered under a Cyber Liability policy.

• Your IT department updates the databases and makes a backup on a non-secure server. Time goes by and you discover that the non-secure is still running and your client’s information has been exposed for the last 6 months. There has been no data breach that you are aware of but you have to go to great lengths and costs to notify your clients.
• Your business is hacked by someone who steals clients’ Social Insurance Numbers and credit card information. The data is sold to a third party who uses it to purchase goods and create false identities. Your costs for legal fees and damages are significant.
• An employee finds out they are about to be terminated. The employee steals your client’s personal information and publishes the data online. Your clients sue your company for the data breach.
• An employee loses their company laptop containing your client’s personal financial information. You have to inform your clients and they sue you for failing to protect your private information.

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