Cyber Liability Insurance
A security, privacy or data breach event is a risk for any company that collects personal identifiable information or handles confidential information on its clients or employees. In addition, the federal government and most states have passed regulations governing how companies must provide notice to their clients. Companies risk incurring lawsuits, fines and penalties for failures to protect data or failures to provide proper notification.
These exposures have the ability to pose significant financial threats to a company. General Liability and Professional Liability policies fail to provide the full protection needed to combat these types of exposures.
The demand for Cyber Liability Insurance is continuing to increase. Other brokers may be soliciting your clients leading with this coverage, and it is now a potential E&O exposure for agents and brokers that do not routinely recommend implementing Cyber coverages.
As your specialty intermediary, NIF Pro adds tremendous value, helps you assess the potential liabilities faced by your clients, and works diligently in securing a Cyber Liability policy that addresses your client’s needs with comprehensive coverage at competitive pricing.
Today’s Cyber Liability Insurance policies include coverage for third party claims arising out of security and privacy liability, data breaches and related situations. Coverage is not necessarily limited to a breach of a company’s computer network: exposures from paper based data, portable devices (blackberry, laptop, iPad, iPhone etc.) and data in the custody of vendors, outsourcers or independent contractors are also insurable. Along with defense costs, settlements and damages, coverage includes fines and penalties imposed based on violations of privacy regulations.
Coverage is also available for certain First Party expenses. Privacy breach response costs are typically insured. Examples include customer notification expenses, customer support, credit monitoring, public relations costs, advertising and IT forensic expenses. Other available coverages include business interruption, reimbursement for replacement of damaged hardware or software and data, along with expenses and payments as a result of a cyber extortion threat.
Policies typically include Media Liability to address the exposures created when a company releases electronic media on their internet site, and traditional Media coverage for printed or broadcast Media may be included so that an additional Media policy is unnecessary.
Please do not hesitate to contact NIF Pro with any Cyber related inquiries.
