Cyber Liability and Electronic Data insurance provides Privacy, Identity Theft and Network Security Liability coverage for any company that relies on electronically stored information. Simple, daily tasks, such as storing sensitive information on your network or connecting to the Internet, make your network a resource that can be exploited by criminals. Below are some claim scenarios that explain how this coverage may protect your business.
Claim Scenario 1: A mid-sized technology company hosts Web sites for retailers. Retailers rely on Web site availability to generate e-commerce income. The technology company’s site is disrupted by a virus. Its customer’s ability to generate income is disrupted. Customers sue the company to recover lost income.
Claim Scenario 2: An employee at an engineering firm defeats his company’s network security defenses to gain access to a customer’s trade secret. The employee sells the trade secret to the customer’s competitor. The customer sues the engineering firm for consequential damages (lost profits) resulting from the firms’ failure to protect its trade secret.
Claim Scenario 3: A doctor’s practice sustains a network security breach. The attacker steals patient records, including financial information and health benefits account data. Data is resold to individuals who use benefits information to fraudulently obtain medical services. Legitimate patients sue seeking compensation for emotional distress in addition to other consequential damages. The legitimate patients’ health insurance carriers sue the doctor’s practice to recover reimbursements made for fraudulently obtained health services.
Claim Scenario 4: A construction company is a subcontractor on a large construction project. The owners rely on their network to manage their subcontractors and to manage material supply. A virus infects the company’s network, corrupting project scheduling and disrupting supply operations. As a result, the general contractor’s overall project is delayed. The general contractor is obligated to pay substantial penalties for delayed delivery and sue the construction company to recover late delivery penalties.
If your business uses e-mail, relies on networks, computers and electronic date to conduct business, browses the internet, has your own website, generates revenue online (e-commerce), handle valuable or personal information on your or another’s network, uses your network to control production, manufacturing, inventory or a supply chain, then you need a Cyber Liability/Electronic Data insurance policy.
For more information or to get a quote, please contact our office at 1-800-866-0777 or click here.
*Insurance varies by state and is NOT available in all states countrywide.