Cyber Liability

An employee leaves their work laptop in an unlocked car.

A flash drive containing customer information or financial records is lost.

The third party vendor your company uses for processing credit card payments is hacked. 

Your server gets a virus that disrupts your online sales, compromises customer payment information and addresses, and causes you to lose significant income while your server is being repaired. 

Information security has become an ever-present issue for small business owners.

Cyber Liability

It’s not difficult to think of large companies who have made national headlines in recent years regarding a significant breach of their private client data. Not only did these companies have to notify all of their clients, they were also required by law to pay for the identity recovery and monitoring services charges incurred by each and every client.  They had to pay restitution and also incurred the additional expenses of re-vamping their entire computer network security system.  However, this growing concern is not limited to multi-million dollar companies.  “Half of all companies that suffer data breaches have fewer than 1,000 employees.  The average cost of a data breach to an organization in 2011 was $5.5 million” according to the combined research of Chubb and the Ponemon Institute’s 2011 Cost of a Data Breach Study (

Private customer information such as addresses, dates of birth and payment information are of particular interest to hackers; and it is also particularly vulnerable.  There is protection in the event that this nightmare should become your reality.

Be aware:  A typical business owners policy has built in exclusions for electronic data.  Cyber liability coverage, also known as Data Breach coverage, is specifically designed to fill this gap.  As the need for this product has arisen in the past 10 years, many companies have developed their own policies and there can be relatively wide diversity in this product from company to company.  Please talk to your insurance specialist to determine the coverage that best suits your business.