What is Cyber Liability Insurance?
Cyber Liability addresses the first- and third-party risks associated with e-business, the Internet, networks and informational assets. Cyber Liability Insurance coverage offers cutting edge protection for exposures arising out of Internet communications.
The concept of Cyber Liability takes into account first- and third-party risks. The risk category includes privacy issues, the infringement of intellectual property, virus transmission, or any other serious trouble that may be passed from first to third parties via the Web.
Why do I need Cyber Liability Insurance?
Traditional liability products do not address Internet exposures, data security and client privacy issues involved in all businesses today. Most general liability insurance policies limit or exclude coverage in this area.
Sending information to the public via a website, California businesses now have some of the same exposures as publishers. These include conventional publishing exposures such as copyright infringement, defamation and invasion of privacy, as well as emerging exposures related to operating on the World Wide Web.
Even if you don’t host your data yourself or send emails from your network you could still responsible for spamming and privacy issues of your clients.
Is your website and any of your data hosted or stored by a third party vendor? Take a good look at your contracts: You’re still legally responsible. You can’t fully control how a provider handles your data but an insurance policy can protect you if your provider makes a mistake or his hacked.
For a company operating in today’s high tech world, your computer network will more than likely provide internal and external email. You will probably have your own web site providing information about your company, its products and services with even the possibility of e-commerce. Most companies today keep client records on file electronically in some type of database program. Within those records there can be private personal information of your clients.
If your system is hacked or an employee steals your client’s personal information your company could be subject to identity theft which could cost your California company dearly.