Cyber Liability Insurance is designed to cover a business’ liability for a data breach in which the customers’ personal information, such as Social Security or credit card numbers, are exposed or stolen by a hacker or other criminal who has gained access to a businesses electronic network. The policies cover a variety of expenses associated with data breaches, including: notification costs, credit monitoring, costs to defend claims by state regulators, fines and penalties, and loss resulting from identity theft.  More specifically, the policies are intended to cover a variety of both liability and property losses that may result when a business engages in various electronic activities, such as selling on the Internet or collecting data within its internal electronic network.

Cyber Insurance is often confused with technology errors and omissions (tech E&O) insurance. In contrast to Cyber Liability Insurance, tech E&O coverage is intended to protect providers of technology products and services, such as computer software and hardware manufacturers, website designers, and firms that store corporate data on an off-site basis.

Ransom Ware is another issue that businesses must be aware of.  Ransom Ware is when someone holds your data ransom until you pay them. Then they give you the code to get your data back once you pay them. Click this link to see what may come up on your computer screen if you are a victim of a ransom ware attack. Ransomware Screen . Ransom ware is not covered by most cyber policies. It must be added as an endorsement.