Cyber liability coverage can be important for any company that uses electronic equipment to conduct its operations. You may need this coverage if you do one or more of the following:
- Communicate with customers via email, text messages or social media;
- Send or receive documents electronically;
- Advertise your company via electronic media, such as a website or social media;
- Store your company’s data on a computer network. Examples of company data are sales projections, accounting records, tax documents, and trade secrets.
- Store data that belongs to others (such as employees or customers) on a computer network. This data may include customer names and addresses, customers’ credit card numbers, employees’ birth dates and social security numbers, and other sensitive information.
- Sell products or services through a company website;
- Use or permit use of mobile devices including staff personal mobile or home devices.
Cyber and privacy policies cover a business’ liability for a data breach in which the firm’s customers’ personal information, such as Social Insurance or credit card numbers etc.. is exposed or stolen by a hacker or other criminal who has gained access to the firm’s electronic network. The policies cover a variety of expenses associated with data breaches, including: notification costs, credit monitoring, costs to defend claims by state regulators, fines and penalties, and loss resulting from identity theft. In addition, the policies cover liability arising from website media content, as well as property exposures from business interruption, data loss/destruction, computer fraud, funds transfer loss, and cyber extortion.