Cyber Liability Insurance and Data Breaches
Attention business owners! A reminder: As of May 1, 2014, the Alabama Insurance Services Office requires agents handling comprehensive business insurance to include an endorsement to each policy excluding data breach or cyber liability coverage. An endorsement is a separate document attached to the policy that legally changes the terms and the coverage afforded under the policy. In a nutshell, your standard commercial general liability policy will no longer cover data-related liability claims. Deciphering a policy and its exact policy coverage is also breaking new ground as these policies are relatively new in relation to a commercial general liability policy. Also, navigating business data losses is a rising specialty as there are special nuances because no two data breaches or commercial businesses are exactly alike.
What data does a cyber liability policy cover?
As a business owner, you should be aware of this change before it is too late. Your general liability policy will not cover damages to your company caused by data breaches leading to confidential or personal information leaks. As such, the purchase of a separate Cyber Liability Policy is essential for businesses that rely on electronic data. This type of data can include:
- Customer orders
- Customer lists
- Confidential payment information
- Company tax documents
- Company employee records
- Company banking information
What expenses does a cyber liability policy cover?
A cyber liability policy is specifically designed to cover expenses related to managing data breaches.
Cost to the company can include:
- Cost of investigating the breach
- Data fixes
- Remediation of the current computer operating system
- Notifying customers
- Public relations
As the world changes and evolves, businesses more heavily rely on computers and servers for the security of valuable data of customer orders, customer lists, and confidential payment information. The purchase of a separate cyber liability policy is crucial to businesses that rely on electronic data regularly. They are extremely vulnerable to the loss of data and vital business information of clients and customers. Businesses who fall into this category need to contact the proper professional agent today to ensure their liability insurance includes a separate appropriate cyber liability policy. When a commercial business suffers a data loss, a cyber liability policy is the only policy specifically designed to cover expenses related to managing and getting past a data breach.
The Liveoak Agency, Inc. will customize a policy to fit the unique needs of your business. Our professional insurance agents can assist you in developing customized coverage unique to your business needs.
Contact Liveoak Agency today for your Cyber Liability Needs!