What is Cyber Liability and what does it cover?
The corona virus pandemic has gone to show how large the online retail market place is. For small businesses, today’s online environment offers convenience to place orders online. For those business owners who offer commerce through their online website are exposed to a new level of risk when it comes to accepting online payment from customers and safeguarding data. Cyber insurance provides a critical layer of protection for business owners when it comes to security data breaches. Common cyber security endorsements under the business policy cover data compromised response expense, data compromise defense and liability, attack and extortion coverage in addition to network security liability.
Data compromised response expense provides coverage for expenses that result from personal data breaches. The coverage also covers notification costs, forensic costs, crisis management and credit monitoring services to those impacted.
Data compromise defense and liability coverage provides third-party liability and defense coverage for losses resulting from a personal data breach.
Attack and extortion coverage will cover expenses resulting from a computer attack or extortion threat including data and system restoration, data recreation, loss of business income and cyber extortion.
Network Security Liability provides third party liability and defense coverage for losses resulting from a breach of sensitive or confidential business information of others.
As businesses evolve into the online marketplace to process online orders, it’s critical to understand how your insurance policy will respond to a security breach should your customer base be exposed to such risk. If your business processes orders and collects payments online it is increasingly important to have a discussion with the Montagno Insurance Agency today to understand if your business is at risk for cyber security.
