Every business holding confidential company or customer information should at the very least have privacy liability insurance to protect their data. Companies depending on internet or online capabilities, such as websites or email, must consider the vulnerability of their intellectual property on public domains, and their exposure to liability arising from libel or defamation via media communication.

Yes. While companies may not store files on an electronic network or computer hard-drive, companies storing business and customer information on paper files will also be covered. Coverage also extends for the entire business network, which includes information stored on mobile phones and laptops.

Traditional commercial general liability policies do not cover these new risks. Even policies with coverage extensions usually are not comprehensive enough to fully address cyber risk. Unfortunately, a resounding number of businesses are unaware of the little protection they have against a rising number of network and data threats.

Many companies believe investing in leading security software or IT outsourcing makes them impermeable to cyber-losses. While these resources help to prevent or mitigate losses, the truth is that neither can guarantee protection from a network breach. The proof is in the mega data breaches from some of the leading global corporations. These entities suffered dramatic financial losses even with top notch anti-virus software and expert in-house IT departments.


According to the Poneman Institute, in 2011 the average cost of a data breach was approximately $214 per compromised record.
Be sure to review your current business insurance: most policies have limited or no cyber liability coverage.
The dramatic increase of network breaches and data thefts have produced a stringent legal environment for privacy regulation and customer notification requirements.
Companies using internet communication or handling sensitive consumer or employee information are at risk of privacy or network related losses.