Cyber liability

Protecting Your Business

Operating a website exposes you to hackers, identity thieves and other criminals who operate mainly over the Internet. Identity thieves steal credit card numbers and Social Security numbers to assume new identities. Hackers plant malware that infect and shut down websites. Details from personal profiles are stolen and sold to scammers. All of these illegal activities are preventable when you obtain cyber liability insurance. First, know what the insurance is and who needs it most.

Cyber insurance is unique and less commonly used than auto, homeowner’s or life insurance. However, it’s becoming more popular with Web entrepreneurs. The owner or manager of an online business is the most common user of cyber liability insurance. A blogger or website owner that is not interested in selling products is the second type of policyholder. This includes any owner of a blog or website that receives hundreds up to thousands of visitors per month.

How It Works

First-party coverage covers the damages that are inflicted against you and your business. You are protected from any damage or loss made to your electronic data, which includes the cost to recover or replace data. Receive coverage for any income loss or additional expenses that you were forced to pay.

Third-party coverage covers the damages that you inflict on other people. You are protected from lawsuits that involve negligence, libel, defamation, invasion of privacy, etc. Coverage includes the costs of legal defense fees.

Different Types of Coverage

Cyber liability coverage is designed to cover the damages that a policyholder causes to someone else. It protects a professional from being sued as a result of negligence. There is coverage for errors and omissions, which occurs when online business owners sell defective products or provide inefficient services to their customers.

Included in a cyber liability policy is protection against theft, data breaches, defamation and unauthorized access to electronic information. Policyholders are covered for lawsuits that may occur if a customer’s account is hacked into or their information is wiped out by a virus. Data breaches occur often with businesses that hold millions of sensitive accounts.