The Internet has grown from a platform for branding and marketing activities to a marketplace where companies can transact business, finalize deals, and enter into legally-binding contracts without any geographical boundaries or limitations. Today, it is virtually impossible to find any modern company or business without an online presence.
Yet, the widespread adoption of cyber technology by businesses in its interactions and transactions with customers, stakeholders, employees, regulatory authorities, and even government agencies has led to new risks and dangers. Without the protection of a cyber liability insurance policy, your decision to embrace the virtual marketplace may prove to be a very costly mistake for your business.
Striking the right balance between freedom of speech and libel, defamation, or even copyright laws can be a tough task, especially on the Internet. Merely claiming that the defamatory statement or copyright violation was made unintentionally may not protect you from liability claims. Hasty actions of an ill-informed employee can leave your facing an expensive and potentially debilitating lawsuit.
Despite stringent rules about use of personal storage devices on the company network, your business network may become the unwitting gateway for introduction of viruses and malware in networks belonging to other businesses. This would be, in the real world, akin to an act of negligence by your employee that results in that fire loss or damage to physical assets of any other person or property.
Every business transaction involves an exchange of personal and financial data between your company and your clients or customers. Your database may store details like credit card information, residential address, birthdays, anniversaries, social security numbers, frequently used passwords, etc. Loss of client data due to unintentional errors or malicious cyber attacks can expose you to unavoidable liability costly litigation.
There are many types of cyber liability risks your business may face. These policy protections can be broken down into two main categories:
Leykell Insurance offers affordable coverage against regulatory actions that may arise from actual or suspected instances of violation of cyber laws. Such proceedings may stretch over a long period even if your company is eventually discharged of all violations. The litigation costs can put your company out of business. A cyber liability insurance can also include coverage for various PR activities and processes that are necessary to mitigate the inevitable negative publicity associated with every cyber liability claim. A proactive public relations campaign may be essential to detail the facts to the widest-possible audience. Having an insurance policy that covers such additional costs can minimize the long-term impact of any cyber liability situation. Do you remember the PR nightmare that Target faced after it settled a data breach lawsuit in 2015 for over $39,000,000.00? Yes, that is 39 million dollars. Not every instance requires a response like Target, but you know as well as we do that an ounce of prevention is worth a pound of cure.
Leykell Insurance offers affordable insurance policy that are not standard commerical coverage and protects against third-party risks such as network or security breaches. This covers many instances of business cyber liabilities such as hacking, introduction of ransomware, or even cyber terrorism offenses against your company. You can also protect you and your company from the inevitable disruptions due to loss of data, destruction of records, or denial of service attacks. This will be very beneficial in cases where neither the customers nor your company is at fault for the loss of data, and yet both parties suffer financial and other consequences of the data lost. Third-party coverage may also include protection against costs resulting from legal proceeding alleging the violation from privacy law.
Industries with further regulation on personal information such as the medical field with HIPAA concerns and the education field with FERPA issues, this becomes all the more important.
Leykell Insurance’s specialized cyber liability insurance coverage leaves you free to focus on expanding your services online without worrying about potential cyber security risks and pitfalls. For starters, your company will be protected from the financial implications of liability litigation or action initiated against your company. This will help ensure profits earned by over the years are not wiped away by just one single mistake, error, or instance of cyber crime.
A comprehensive cyber liability policy cover secures your company’s operations from such actions. Instead of understanding the importance of cyber liability insurance the hard way, just get in touch with Leykell Insurance to secure your cyber presence from a wide range of risks with a single policy. Our comprehensive bouquet of insurance protection will secure your commercial operations from a wide range of risks in the virtual as well as the real world. Click below to contact us now.