Lisa Terrasi, Marketing Associate, explains what cyber liability covers and why it’s so important.
With breaking news each day that another business discovered their data was hacked, every business or community association should think about obtaining a Cyber Liability policy. Community Associations and their management firms are especially susceptible because of the personal data they maintain on owners and prospective buyers. More and more associations and management firms have websites that they use to store information and for their residents to pay their maintenance fees. Most General Liability, Directors & Officers Liability or Fidelity Bond policies provide limited, if any coverage.
Cyber Liability provides coverage in a number of areas including liability lawsuits lodged by a compromised resident or prospective buyer that was hacked. It also provides for, the cost of monitoring their credit, which is required by law following a breach. In addition, it must be determined how the breach occurred and the extent of it, which can and usually does result in extensive forensic costs. Though those are the main areas, some policies also include coverage for content posted to the insured’s website by a hacker and the cost to hire a public relations firm to rebuild the insureds reputation after a data breach.
Generally, in order for it to be considered a breach, at least one and sometimes two of the following information must have been hacked: name, driver’s license number, social security number, date of birth or credit/bank card information.
For more information, please contact us.