Cyber Liability
What is Cyber Liability insurance?
As a business owner you are probably already covered for property damages and general liability. However, these policies do not provide cover for more specialized risks, especially those related to data breaches and loss.

Cyber liability insurance is a specialized type of insurance that particularly covers the risks your organization bears in relation to the data and information you store on your servers and any liability that emerges out of any attacks of your digital assets, like business website, mobile application, etc.
Who needs a Cyber Liability insurance policy?
Contrary to common belief, only large corporations do not benefit from a cyber liability insurance policy. In fact, any business with any common or specialized digital assets - such as a website or a service app - that store customer information - including social security numbers and other identities, health records, or credit card numbers - should get comprehensive cyber liability coverage.

Following is a list of incidents that commonly occur and result in daunting privacy claims from customers. Going through the list, you can easily determine whether you need thorough cyber liability insurance coverage or not, though we strongly advise you get it if you store any type of data we just talked about:
  • One of your employees fell for a phishing trap by opening an infected email
  • An unhappy employee stole information from your servers
  • Your credit card payment system or machine was hacked
  • An employee mistakenly send sensitive customer information to an unauthorized party
  • One of the computers on your network is stolen or lost
How Cyber Liability insurance works
All kinds of liability insurance gives your business cover against possible claims depending on the nature of the policy. Cyber liability coverage insures you against claims of customer data loss or breach.

With proper insurance, you can protect your business against any such claims, especially if your policy is designed to mitigate the specific kinds of risks your business faces and the kinds of claims you are frequently combat.

At Ficke Insurance, we work with a network of nationwide insurance carriers who offer insurance policies tailored to address your business specific risks. We have been helping businesses get proper insurance coverage for 35 years, which is why you can trust us with your cyber insurance.
What does Cyber Liability insurance cover?
Cyber liability coverage is the ultimate solution for all of your business related data privacy and breach risks. It mitigates all common risks a business with digital assets storing customer information faces, which is why cyber liability insurance has become one of the most popular types of insurance in the 21st century.

If you acquire the services of a reliable insurance agency with proven track record of delivering tailored cyber insurance solutions to its customers, you can have them develop a policy that comprehensively covers the specific claims you believe your business is likely to combat in the future.
Typical areas of Cyber Liability insurance coverage
A smartly devised cyber liability insurance policy often has a combination of liability and non-liability covers, since a business that stores sensitive customer information can face many direct and indirect kinds of damages claims.

When we work with our network of insurance carriers for a customer's cyber liability policy, we make sure we deliver the right combination of covers that protects our customer comprehensively and does not cost high in the premiums.

The key liability-based covers our privacy insurance policy provides includes:
  • Data security and privacy coverage for all sensitive customer information you store on your computers
  • Defense costs during regulatory proceedings in cases where you are asked to defend allegations of regulatory breach
  • Civil penalty costs and fines related to the general body of regulations universally recognized
  • Media related liability coverage for defamation or invasion of privacy claims
Non-liability related covers that our cyber liability insurance can provide include - but are not limited to - the following:
  • Costs incurred in defending a breach of privacy claim, including:
    • Forensic investigation costs
    • PR and legal costs
    • Identity and credit monitoring related expenses
    • Identity theft insurance and possible restoration related expenses
  • Income loss and extra expenditures incurred during - or due to - a security or breach event, such as a cyber attack
  • Payments made due to cyber extortion threats and as rewards linked to such a situation
  • Expenses incurred in replacement of your digital assets infected during a cyber attack
  • Costs incurred due to system or network failure, causing disruption in business
  • Payments related to incidents of damages to first- or third-party reputation
  • Cover for avoiding other non-liability related claims

To get more information about what your insurance policies should look like, contact one of our agents right now.