Cyber Liability Insurance
Definition – Cyber Liability and Privacy Insurance Policies are designed to cover a variety of liability and property losses that result when a business engages in various electronic activities such as selling on the internet or collecting data. Most notably, cyber and privacy policies cover a business’ liability for a data breach in which the firm’s customers’ information such as Social Security numbers, credit card information or medical records are stolen by a criminal who has gained access to the firm’s electronic network. These policies pay expenses associated with a data breach including: notification costs, credit monitoring, defense of claims by state regulators, fines and penalties and loss resulting from identity theft.
Important things that you need to know about Cyber and Privacy Insurance:
- The average cost of a data breach to an organization jumped from $5.9 million in 2014 to $6.5 million in 2015. The average cost per compromised record in in 2015 was $218., of which $74 amount relates to direct costs associated with forensics, notification, credit monitoring and public relations. (Information obtained from 2015 Cost of Data Breach Study: Global Analysis, Ponemon Institute)
- Cyber liability can cover the costs associated with lawsuits alleging trademark or copyright infringement, invasion of privacy, defamation or product disparagement, as well as, regulatory proceedings seeking fines or penalties as a result of actual or potential unauthorized access to private information.
- As technology advances and evolves, so do Cyber Liability policies. More and more insurance carriers are entering the marketplace by offering some type of cyber liability insurance product. The coverage forms need to be reviewed and analyzed carefully to determine the best protection available for the insured.
Swingle, Collins & Associates specializes in commercial cyber liability coverage in Dallas, Southlake, Westlake, Plano, Coppell, Irving, Argyle and the surrounding areas. The descriptions of commercial cyber liability coverage listed on this website are brief and subject to the provisions, limitations, and exclusions that can only be expressed in your policy and related endorsements. For additional information of how Swingle, Collins & Associates can assist in meeting your coverage needs please contact your dedicated risk manager to discuss the benefits and services of commercial inland marine insurance coverage.
The information contained on this page is provided for informational and educational purposes only. It contains general information on insurance issues and may not reflect the most current developments in insurance coverage and is unlikely to apply in all factual scenarios. The information does not include all the terms, coverage, exclusions, limitations or conditions that may be contained in the actual insurance contract language. The policies themselves must be read for those details. Sample policy forms will be made available upon reasonable request.