Cyber Liability Insurance for your Business

What Cyber Liability Insurance Is
and Why Every Company Needs It

Cyber Liability insurance responds to damages to others that arise from the failure of you or your organization to protect and keep information and/or data that is in your possession private and accessible only by those to whom authorization has been given to view or to interact with that private information.

Why should you secure Cyber Liability coverage?  Consider all the costs:

  • Financial liability arising from lawsuits
  • Expenses to respond to government and regulatory agencies and laws
  • Down‐time of computers systems and associated loss of income
  • Reputational damage and loss of current and new clients
  • Time and expense of monitoring and managing the changing landscape of cyber threats and bests defenses against these threats.

Small Business Survey Statistics:

Don’t let misperceptions about Cyber
Liability put your small business at risk.

No one’s interested in a little company like mine”

  • 43% of cyber attacks target small business.
  • Small businesses don’t have the sophisticated technology to protect against cyber incidents and therefore make easy and attractive targets.
  • Only 48% of data security breaches are caused by acts of malicious intent. Human error or system failure account for the rest.

“My operational expenses are already very high in other areas; why should I allocate resources to protect against Cyber Liability?”

  • 60% of small companies go out of business within six months of a cyber attack.
  • $879,852:  The average amount spent by surveyed companies in the aftermath of cyber incidents, for damage or theft of IT assets.
  • $955,429:  The average cost of disruption to normal operations, in addition to the above.
  • A small business or non-profit organization with standard cyber exposures can secure $1,000,000 of Cyber Liability insurance coverage for as low as $1,500 annual premium?

What to look for in your Cyber Liability insurance policy

Network Security Liability
Provides liability coverage if an Insured’s Computer System fails to prevent a Security Breach or a Privacy Breach.

Privacy Liability
Provides liability coverage if an Insured fails to protect electronic or non‐electronic information in their care custody and control

Media Liability
Covers the Insured for Intellectual Property and Personal Injury perils the result from an error or omission in content (coverage for Patent and Trade Secrets are generally not provided)

Regulatory Liability
Coverage for lawsuits or investigations by Federal, State, or Foreign regulators relating to Privacy Laws

Crisis Management

  • Notification Expense: First‐party expenses to comply with Privacy Law notification requirements
  • Credit Monitoring Expense: First‐party expenses to provide up to 12 months of credit monitoring
  • Forensic Investigations: First‐party expenses to investigate a system intrusion into an Insured
    Computer System
  • Public Relations: First‐party expenses to hire a Public Relations firm

Data Recovery
First‐party expenses to recover data damaged on an Insured Computer System as a result of a Failure of Security.

Business Interruption
First‐party expenses for lost income from an interruption to an Insured Computer System as a result of a Failure of Security.

Cyber Extortion
Payments made to a party threatening to attack an Insured’s Computer System in order to avert a cyber attack

Technology Services/Products & Professional Errors & Omission Liability Technology
Products & Services and Miscellaneous E&O can be added to a policy when applicable

What to look for in your insurance broker

Moody Insurance Worldwide has teamed with some of the largest, most-respected insurers to tailor the right protection for our clients’ needs. We are a trusted partner for businesses of all types, developing and implementing insurance programs for almost half a century.

Our programs contemplate the unique exposures of each organization, providing customized coverages based on the services you provide and your company structure while addressing your stated insurance protection objectives.

Moody will structure an insurance portfolio that properly protects you from the claims that threaten to redirect important financial and personnel resources and many even cripple your company. Choose an experienced partner to help you secure this vital protection.

Claims Scenarios

Could this happen to your organization?

Theft of Digital Assets ‐ $5,000,000.00

A retailer is contracted with a third-party service provider. Multiple laptops belonging to the service provider are stolen containing the data of over 800,000 of the retailer’s clients. Under applicable notification laws, it is the responsibility of the retailer, not the service provider, to alert the affected clients. The total expenses were for proper notification of the retailer’s clientele and for crisis management.

Privacy Breach ‐ $890,000.00

The records of clients were improperly disposed of by a company’s employee in violation of the company’s privacy policy. The records contained the client’s social security number, credit, and debit card numbers, names, phone numbers, and addresses. The company agreed to a settlement agreeing to pay fines and penalties imposed by the state in addition to credit monitoring fees for the affected clients.

Cyber Extortion Threat ‐ $ 2,000.000.00

A domestic company partnered with an international software vendor. The contracted vendor left universal administrator defaults on the company’s server. A hacker was paid a fee to exploit the company’s vulnerability resulting in monetary demands or the records of the registered users would be made public. The expenses were to cover the extortion expenses and extortion monies.

Malicious Virus ‐ $875,000.00

A computer hacker released a computer worm directing infected computers to launch a denial of service attack against a regional company. The infection resulted in an 18 hour shut down of the company’s computer systems. The fees were to repair and restore their system as well as for business interruption expenses incurred.