Now before you say to yourself, “I’ll take my daily latte instead” or for that matter, anything other than cyber liability insurance, if you’re a business owner, you need to pay attention.

Electronic data has become essential in all aspects of business activity, and has intrinsic value.  Most businesses these days are completely dependent on their computer system.  Storing personal data on your network, individual computers or even keeping this personal information in a paper file leaves businesses vulnerable to an attack.

The looming threat of a virus, hack on your system or even a rogue employee are risks to be taken very seriously.  Cyber liability insurance has become increasingly important to addresses these risks.

While cyber liability insurance has been around for nearly 10 years, most business owners have just started hearing about it over the past few years.  When we review this coverage with clients, the two most common questions are:

  1. What is it?
  2. Do I need it?

What is cyber liability?

Cyber liability addresses the risk the business faces with e-business, the Internet, networks, electronic data, informational assets and other personally identifiable information the business keeps about its clients or employees.  Common types of risks include:

  • Hacked computers
  • Virus attacks
  • Web content liability
  • Privacy issues
  • Infringement of intellectual property

These types of attacks tend to be more public because the amount of damage is so huge – as evidenced by the Sony data breach at an estimated $171 million – but employees continue to pose the greatest threat.

According to Kristen Simonson, underwriting director with Travelers Global Technology division, “Many of the data breaches that have occurred over the past several years are not limited to hacking.  In fact, the majority stem from old world issues such as employee negligence in password management or leaving confidential documents out for anyone to see.”   

Do I need it?

  • Does your business maintain electronic records with personal data on your clients?
  • Do you keep paper files with personal data on your clients?
  • Do you store (digitally or in a paper file) personal data on your employees?
  • Do you accept credit card payments from your customers?
  • Do you have a laptop or smartphone to access your email?
  • Do you shred outdated files?

If you answered yes to any of these questions, you have a risk that needs to be addressed.  Seem like a fairly broad list?  That’s because nearly every business in operation faces the risk of its clients information, or personal information of its employees, being compromised.

Curious about what you can do to prevent Cyber Crime?


For more information on cyber liability insurance, or for specific recommendations on best practices to reduce your cyber liability risk exposure, contact us… we’re here to help.

Portions of this article reprinted with permission from Professional Insurance Agents Association of Ohio