The 4 Components of Cyber Liability Insurance


Protecting your business from an ever-evolving risk

What is Cyber Liability Insurance? If you are like me and most of the population, you are not completely sure. It is very much like technology in that it’s always evolving and expanding.

What’s apparent is Cyber Liability Insurance is quickly becoming one of the most important insurance policies a business can own. As computers become more powerful and people continue to be greedy, the information and financial resources a business must protect are becoming more and more exposed. Also, because employees are connected in real time and corresponding with so many more clients and prospects than any other time in history, they are sitting targets of thieves who count on them being overwhelmed and under vigilant.

Here at Sadler & Company, Inc., three of our clients recently experienced cyber-attacks that resulted in severe harm to their businesses.

The Four Components of Cyber Liability Insurance

  1. Error & Omissions provides coverage for errors in your professional services. These include doctors, lawyers, architects, engineers, and technology services such as software and consulting.
  2. Network Security provides coverage for theft of trade secrets and patent applications for clients and consumer data breach, virus transmission, cyber extortion and destruction of data.
  3. Privacy is coverage for the release of classified or protected information and does not necessarily mean a breach of the network. It can apply to records tossed into the trash, lost laptops, or accidently emailing a file of customer account information to the wrong email address.
  4. Media Liability covers claims related to infringement of intellectual property, copyright/trademark infringement and libel and slander. Coverage can also extend to offline content as well.


An Important Endorsement to Add to Your Cyber Liability Policy

We strongly recommend that businesses have a Social Engineering/Cyber Deception endorsement on their Cyber Liability Policy.

Cyber Deception results when you or someone in your organization, in good faith, transfers funds or your goods in lieu of payment to a third party under false pretense. This can be a result of electronic or telephone communications. Also, it covers theft of funds as a result of Cyber Deception.



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