Cyber Risk Insurance - Fidelity-Pak Insurance Program
Technology plays a significant role in just about every organization today. From customer transactions to social media interactions, technology provides a convenient way to conduct business and interact with customers and potential customers. However, with technology use also comes the threat of certain risks, such as cyber-attacks, which can lead to massive losses for businesses. Cyber liability insurance helps businesses decrease these risks by offering insurance solutions that help protect your business.What is Cyber Liability Insurance?
Cyber liability insurance, also known as cyber risk insurance, is a category of insurance that covers liability and property losses that occur as a result of a business participating in online and electronic activities, such as collecting data within its internal network or selling on the internet.
Cyber risk insurance is commonly confused with technology errors and omissions (tech E&O) coverage. Technology error and omissions insurance policies do contain some the same insurance agreements as cyber insurance; however, tech E&O insurance is designed to protect providers of technology services and products, such as website designers, computer hardware and software manufacturers, and firms that store corporate data on an offsite basis. On the other hand, cyber risk insurance is intended to protect consumers of technology service or products.Cyber Liability Insurance Under the Fidelity-Pak Program
Fidelity-Pak's Cyber risk insurance covers various expenses related to cyber crimes. The most common reimbursable expenses include:
- Security and Privacy Liability
- This covers defense fees and damaged caused by a lawsuit filed against you as a consequence of computer security or privacy breaches. This includes theft of data from your system, loss of client or employee information, circulation of a computer virus from your system to another's, and violation of privacy and data regulations.
- Privacy Regulatory Defense and Penalties
- This includes legal expenses you accumulate to defend or respond against a regulatory action emerging out of a computer security or privacy breach, in addition to penalties and fines determined in the activity, as insurable by law.
Costs you may become subject to as a result of the following:
- Multimedia Liability
- Customer Notification and Credit Monitoring Costs
- Data Recovery
- Data Extortion