Cyber Liability Basics

In truth, Cyber Liability Insurance is not that different from regular liability insurance, like auto or homeowner’s; it protects your business in case someone sues you.

Except with cyber liability insurance, the people suing might live far away and work for an internet service you use, like Google or Gmail. They might say that they’ve been harmed by something you did, like sending them an e-mail with a virus or disclosing their personal data (like their e-mail address) without getting consent.

If this happens to you, your Cyber Liability Insurance helps protect you in case the people suing you want to take your money or property, just like how regular liability insurance helps protect you when someone wants to sue and take your car or house.

Generally speaking, there are three types of losses your Cyber Liability Insurance policy will cover:

• Defense costs: this is the cost of hiring a lawyer and/or expert witnesses in order to defend yourself.
• Judgments or settlements: this is money that you have to pay out when a court decides against you, whether it’s the full amount of the claim or a smaller negotiated amount. Your insurer will reimburse you for your loss.
• Privacy Damages: this is when you’re required by law to pay damages because you’ve broken privacy laws, like the Fair Credit Reporting Act or New York’s General Business Law.

More About Cyber Liability Insurance

To learn more about how to best protect your company from the growing risk of cyber liability in today’s economy, our team is standing by to talk you through your options. Click the button below to get started.