Cyber Liability Risks

The increasing number of online crimes is very alarming. Crimes can now be made by criminals while staying in the comfort of their own home. By simply using their computers and hacking skills, they can infiltrate any website like the government or companies computer systems. If the computer systems are hacked or the customer, employee, or partner data is otherwise lost, stolen, or compromised, the costs of response and remediation can be significant. The company can be exposed to the following costs:

With these kinds of risks that companies are exposed to, they are investing with cyber liability insurance. Some businesses have the standard insurance policy as Business Owners Policy or BOP, which may provide coverage for certain types of cyber incidents. However, they also purchase a stand-alone cyber liability policy in order to customize the needs of their company. This type of policy can cover several types of risk including: loss or corruption of data; business interruption; multiple types of liability; identity theft; cyber extortion; and reputation recovery.