Cyber Liability Insurance: Keep Your Business Protected Online

2 November 2015
 Categories: Business, Blog


As businesses move into the limelight and start posting more blogs and stories on social media, they face more of a risk than they think. Most businesses and owners do not ever think that a blog or simple social media post will come back to bite them, but it happens. In fact, if you are not covering your bases, you could be sued for libel, slander, and even intellectual property rights. Getting sued is scary for anyone and it can be detrimental to a business. So, what can you do about it? Cyber liability insurance is one way to protect your company and all of your social media and blog postings. 

What Type of Coverage Does a Business Need?

Most business have some form of general liability insurance and while your current policy may protect you against some risks, not every risk is covered. Cyber liability insurance provides you with an additional blanket to protect you when you post items online. Some of the specific coverage you may receive includes:

  • Protection from data breaches
  • Protection from intellectual property rights infringement
  • Cost of lawyer and court fees
  • Libel or advice that causes harm
  • Media content coverage

Why You Need to Have Cyber Liability Coverage

If you do not currently have cyber liability coverage, there are a number of reasons why you do need to have it. First and foremost, you probably do not have a risk management team working in your office. A risk management team is responsible for looking over something before a company posts it. The team will evaluate how risky it is for the company to say it and when there are legal concerns, the risk management team will tell the company to avoid placing the information online. 

Another reason you need the additional coverage is because your general liability is unlikely to cover you. If you say something negative online or you suggest something and it injures someone, you are not protected under your general liability policy. 

Lastly, if you store your company's data in a cloud server or on another server that is not your own, you are responsible if there is a breach in the information. Without cyber liability insurance, you will not be covered and you may face some hefty penalties and lawsuits. 

Cyber liability insurance is beneficial to have as it will protect your company from a myriad of problems that can arise online. It is better to protect your company with an additional commercial insurance policy than to risk it and face lawsuits from unhappy consumers.