Cyber Liability for IT Professionals.
Cyber liability insurance cover has been around for 10 years, but most security professionals seem to have not heard of it or know that it exists
Cyber threats are real, growing in both number and sophistication. There is an increased potential for errors and omissions, copyright or trademark infringement, and breaches of private information.
Damages from these events can be devastating to any technology company’s bottom line.
Technology businesses today are driven by data. With that comes the profound responsibility to protect customers’ private information, to prevent the inadvertent transmission of computer viruses and to ensure that authorised users are able to securely access your website or computer network. The theft or misuse of private or confidential customer information occurs daily.
Today businesses are exposed to an increasing number of cyber-driven disruptive scenarios, driven by three growing trends:
1. There is a growing interdependency of industries, businesses and processes
2. There is a growing inter-connectedness of things other than computers and mobile devices
3. Wireless connections are available almost everywhere
Tech companies handle huge amounts of data. That means huge risks and consequences if it gets into the wrong hands.
Cyber threats continue to grow and represent a serious challenge that all technology companies face.
Just as technology companies would not go without an insurance policy to protect themselves from a fire, they shouldn’t go without protecting themselves from cyber risks. Cyber cover offers a flexible approach to meet many of the specialty insurance needs of today’s innovative technology companies including:
- Technology errors and omissions liability
- Network and information security liability
- Communications and media liability
- Employed legal professional liability
- Expense reimbursement
In addition to financial loss, a breach can halt a business’ operations, create legal issues and damage customer confidence. Damages from these events can be devastating to your business’ bottom line or to the reputation you’ve worked so hard to build.
5 Reasons to have the cover
Breach of Contract – Probably the most important element of cover to a Technology company. Breach of contract is mentioned in all Professional Indemnity policies, but in many the cover is then restricted or removed entirely under the exclusions.
Hacker Protection – The risk of hackers in the current environment and the damage that they can cause.
Unauthorised access – In 99% of hardware and software projects there is an element of network security. Failing to configure security correctly, add patches where needed and even to switch the security features back on following changes are all areas where insured’s face a potential exposure following a hack or virus on their client’s network.
Public Relations and crisis management services – It’s all very well protecting the client who has suffered the loss, but what could the consequence of knowledge of that claim reaching your other clients? Would they be concerned? Could they leave? This section of cover provides the insured with reasonable funds to call in experts and avert or mitigate any material damage to any of the insured’s brand or business operations.
Infringement of Intellectual Property Rights – Breach of intellectual property rights is something that is often given in the market, and yet is also often restricted in value.
Target Clients include but are not limited to:
- Software companies
- Hardware companies
- IT-Services
- Telecommunications
- Communications Equipment
- Digital Broadcasters
- Electronics Instruments
- I.T. Security providers
- IT Consultants
- Business Process Outsources
- Data Centres / Cloud Hosting
Top Tips:
- Be proactive – it is important for technology companies to protect themselves before an incident occurs.
- Turn risk into an advantage – when you get ahead of your cyber risk, by anticipating and preparing for it, you avoid disruptions and reduce costs. Your business continues with less interruption and creates a competitive advantage
