Why Cyber Liability Insurance is Essential in our Electronic Environment

 

Cyber Crime - You need insuranceYou need cyber liability insurance! Computers have captured the modern world – especially when it comes to the way we work and do business. Most professions nowadays are at least partially dependent on electronics and the internet. Unfortunately, there are unique risks involved in the cyber realm and therefore you need specialised insurance coverage for when this computerised world creates real-world calamities.   

People are often unaware of the threats they face when operating in a high-tech milieu.

Here are some of the dangers involved against which Cyber Liability Insurance offers protection:

 

Professional Pitfalls

If your business offers any services that somehow involve computerised work, you better ensure that you are insured! You need to be covered for your customers’ potential loss or damage as a result of negligence on your part. Other liabilities may include defamation issues (e.g. if one of your employees indulged in name-calling via e-mail and the victim is not a real sport about it) or copyright infringement problems (e.g. partially using another party’s code to develop a system for a customer and then being sued for it).

One mistake might cost you your business if you are not well-insured.

Multimedia Misfortunes

Posting anything online – for marketing or other purposes – poses risks. The liability issues you may face often stem from misguided or unintentional actions, but could nevertheless be very costly.

You might become guilty of defamation or product disparagement by making statements that could place another business or person in a bad light – e.g. making exaggerated claims about your own product (“The best {fill in the blank} in town”) when this is not completely factual and your competition turns out not to be completely forgiving about the matter. Invasion of privacy is another potential landmine. For instance: You have a leather bag business and your partner, who is also the company’s self-appointed marketing agent (and not too clued up about popular culture), downloads a photo of a pretty girl from the internet, edits in one of your products and posts it online. He is very chuffed, but the lady happens to be actress Kristen Bell (“who?”) – a fierce animal-rights activist – whose lawyers are less chuffed. Plagiarism or copyright infringement issues present other potential misadventures – say you used a low budget graphic designer to create your corporate identity, but apparently your fancy new logo looks pretty much identical to that of another less-than-impressed company that is now pressing charges.

There are multiple ways in which multimedia might land you in a sticky spot and therefore multiple motivations to make sure you have insurance when it happens.

Security Snares and Privacy Problems

The internet is a play park for clever criminals. If you were ever to fall victim to them, you do not want to be uninsured! If your system or network experiences a security breach, it could lead to the theft, destruction, alteration, copying or unauthorised disclosure of data – which might include data of employees or customers. It could also mean that your network unwillingly becomes involved in (and legally responsible for) cyber attacks, such as the spreading of viruses. These and other scenarios might lead to expensive damages, potential lawsuits or civil regulatory penalties. There may also be crisis management costs involved after a security breach – like mitigating brand damage or notifying and supporting affected customers.

Liability from Losses of Data or Income

Imagine something were to happen to the software, hardware or computer data you need to operate your business… This could be due to human or technological errors, security breaches or any type of accidents. The idea probably sends chills down your spine – as it should: such mishaps could be a great setback in terms of business down time, temporary increased running costs, data recovery expenses, damaged public relations or lawsuits. Moreover, it might be necessary to pay data extortion costs to prevent any data loss or damage when you are facing a threat. The correct insurance will mitigate these costs and even save your business.

Computers were created to make life easier, so do not let any cyber hazards end up making it worse! And never be too confident that your security measures and intentions to stay on the right side of the law are bulletproof protection.

 

Contact Status Insurance Brokers to get the right Cyber Liability Insurance for your needs.

Contacts

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