Cyber Liability
Cyber liability coverage provides protection for losses involving an unauthorized leak of confidential information transmitted via email, the Internet and computer networks, as well as ransomware – a type of malware that blocks access to files and demands a ransom payment to decrypt them.
Some policies include coverage for recovering lost data, fines and penalties for breaches and the costs to notify those affected, and for credit monitoring services. It is important to note that there is no standardized cyber policy, so a careful review of coverage is needed.
Why It’s Important
The use of computers and email brings with it a higher risk for security breaches, theft, loss, or accidental transmission of confidential information (personal or financial). Security breaches are not just caused by hackers. Other causes include losing a laptop, employees acting maliciously, or problems with offsite data storage.