Cyber liability covers the first party and third-party risks that are associated with e-commerce businesses, the internet, networks and any informational assets. Cyber liability insurance offers you the coverage protection that are relating to exposures arising out of internet communications.
The whole concept behind cyber liability is to consider the first and third-party risks. The risk category includes data storage, business interruptions, fraud and theft, extortion, crisis management, copyrights, privacy issues, virus transmission, or any other serious trouble that may be passed from first to third parties via the Web.
When do I need Cyber Liability Insurance?
Anyone with a Web site now has the legal liabilities of a publisher and has a legal responsibility to protect customer privacy information.
Creating a Web site is simple. The exposures that come with it are not. Cyber Liability is a constantly evolving risk for every business today. Over the last several years, cyber liability insurance has grown from coverage designed solely for information technology companies to coverage that applies to all industries. Any business that has any form of personal information of their customers or employees (whether in electronic or paper/non-electronic format) has cyber exposure and is at risk.
States are reacting swiftly to data breach issues with sweeping legislation affecting almost all businesses. Recently enacted laws require notification to all customers affected by a breach, whether their information has been used maliciously. In most cases, the notification also requires an option of one-year credit monitoring services and a new card or account number for customers. Costs can be as much as $250 for everyone affected by the breach, and the average is around $188 per individual.