Cyber liability coverage

Cyber breaches are on the rise and will only increase as technology becomes more widely used. Did you know it takes an average of 14 days to resolve an attack at an average of $17,696 per day? Seventy-five percent of attacks are random and not targeted, and 66 percent of breaches go undiscovered for months.

Insureds are not always aware of the risk they are taking by not having this coverage, and some think they have no exposure to this kind of loss at all. In reality, there is so much we do every day that makes us vulnerable to these types of losses. If a company uses any type of electronic data to store information (accounting records, customers’ information, employees’ Social Security numbers, etc.), they are at risk of breach, thereby exposing their clients.

Something as simple as communication with customers via email could put a company at risk for loss. If damage to this data occurs, it likely would not be covered under a typical commercial general liability policy and could put the company at risk for lawsuits that they may not have the resources to pay. Would your insured have coverage if a virus destroyed all of their essential electronic data? How about coverage to get that data back, which can be very complicated and time consuming? These are all things that should be considered and discussed with your clients to ensure that they have adequate coverage for all risk associated with their business.

Our Cyber Liability Coverage includes the following:

• Digital promotional materials
• Network security
• Protected information
• Regulatory proceeding
• Privacy breach

Contact your underwriter with questions, and he or she can explain the benefits for your specific insured.