Cyber Liability

There is a new risk in town.


And its’ name is Cyber Liability.  It goes along with identity theft of which we spoke a few days ago.  However, this is found in businesses.  The greatest threat is to smaller business operations. Cyber liability is when one breaches private information digitally. Not all commercial insurance policies cover this type of risk.  Most exclude coverage.  Cyber claims are generally before there is a specific loss, and mostly discovered by a third party reporting the breach to the company charged with the protection of private information.  Once the breach has been discovered is when costs began to incur, not necessarily when a client has suffered an actual loss.  We must ask how this happened.  What information has been compromised?  And how does this affect the client?  Are there any state or federal laws that must be considered?  Do we need to notify the client?  What remedies do we have available and at what cost? In addition, we must concentrate on stopping the breach and resolving that issue.

Will the General Liability policy have coverage for this?  Probably not.  General Liability coverage is designed to pay a third party after loss is suffered.  There may be some coverage under Professional Liability if not excluded.  Most technology and telecommunications companies have some coverage, but main street type, small business are not always covered.  Please contact your agent or one of ours to find out if you are protected.


Commercial Insurance.Net, LLC Advisor is not an attorney, accountant or certified financial planner and makes no representations or warranties to that effect.  Always check with your chosen professional as to statements made in this blog for your particular situation.

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