- What is it?
Cyber insurance is still relatively new, policies can vary significantly in coverages, terms, conditions and exclusions. Businesses should work closely with an insurance agent who knows these policies well when selecting a policy
- Who’s it for?
Few California businesses don’t have exposure to at least some data-related risks. Cyber liability insurance is a coverage that an increasing number of businesses should have.
- What is offered?
- Network Security Privacy Liability Coverage
- Electronic Media Liability Coverage
- Employee Privacy Liability Coverage
Cyber Insurance in California
What is cyber insurance?
California businesses increasingly face risks that weren’t prevalent just a few decades ago. Cyber insurance offers protection against many of the online and digital risks that are present today.
Because cyber insurance is still relatively new, policies can vary significantly in coverages, terms, conditions and exclusions. Businesses should work closely with an insurance agent who knows these policies well when selecting a policy.
What businesses in California should have cyber liability insurance?
Few California businesses don’t have exposure to at least some data-related risks. Cyber liability insurance is a coverage that an increasing number of businesses should have.
For instance, consider how the following businesses might be exposed to online or data risks:
- Gas Station: Customer credit card numbers could be stolen by pump skimmers
- Medical Practices: Patient health records could be shared in a way that violates HIPAA
- Legal Practices: Confidential client information could be accidentally disclosed
- Financial Advisors: Clients’ account numbers, usernames and passwords could be stolen
- Businesses With Remote Workers: Equipment could be forgotten at cafes or other public locations
Some of these situations result in direct legal violations (e.g. HIPAA violations). Others compromise data but don’t necessarily break a law. In all of these situations, businesses might be held financially responsible and want cyber liability insurance.
Get A Quote!
What coverages can businesses secure through cyber liability insurance policies?
Although there is still significant variance among policies’ coverages, most cyber liability insurance policies make certain coverages readily available. Some of the more common protections are:
- Network Security Privacy Liability Coverage: May cover breaches that violate federal and/or state regulations
- Electronic Media Liability Coverage: May cover trademark infringement, plagiarism and defamation claims associated with digital content
- Employee Privacy Liability Coverage: May cover breaches of employees’ personal data, possibly including bank account numbers, SSNs, etc.
Some policies not only provide these coverages for breaches of a business’s files, but also if a stated vendor’s files are breached. Such coverage might help protect a business if it’s sued because of an incident that a contracted vendor is involved in.
Do cyber liability policies cover ransomware incidents?
Ransomware is becoming an increasingly prevalent issue, and it’s one that even large businesses and governments haven’t been immune from. In ransomware attacks, a business’s files are held hostage in exchange for a ransom payment.
Many cyber liability policies do provide at least some coverage for ransomware attacks. A few policies might still not offer this coverage, however, and protection against those that do provide the coverage can vary significantly.
Businesses that are specifically interested in protection against ransomware should speak with a knowledgeable insurance agent. An agent who has experience assisting businesses with cyber liability policies will know how to find a policy that provides robust ransomware coverage.
What sorts of incidents can cyber liability policies cover?
The exact incidents that a cyber liability policy covers are determined by a particular policy’s coverages and terms. With the right coverages, a policy might cover the following:
- Theft of Data (e.g. an employee steals files)
- Unauthorized Access (e.g. a hacker breaches a network)
- Human Error (e.g. an employee leaves a device in public)
Should a business have a valid claim, the liability insurance may help pay to notify customers, provide credit monitoring, restore files or software, and other costs. Some policies also provide compensation for revenue that’s lost as a result of an incident.
How can California businesses get cyber insurance policies?
For help finding a cyber insurance policy that suits your business’s risk exposure well, contact the independent insurance agents at Truck Writer Insurance Services. Our California agents can show you policy options from several insurance companies, and we have the expertise necessary to help you choose which option is best for your business.
What People Say About Truck Writers Insurance Services
Ron is the man. I used Ron to get my limousine insurance with CPUC for the past 3 years. It’s always a great experience and easy to get my policies and payments done without going to their office. This is the man to beat if you’re looking for cost-effective and reliable commercial insurance!
