Coverage for Cyber Exposures

Information technology permeates almost every business in the world. Cyber risk opens door to lawsuits from global cyber exposures. When purchasing small business insurance cyber risk coverage should be considered and quoted in your proposal.

State and federal laws that govern privacy issues can bring your business to a standstill if you do not have cyber protection from losses due to privacy legislation. Incorporating cyber coverage into your insurance portfolio has not been a standard practice for insured's and/or brokers in the past. Just as purchasing general liability insurance and workers compensation insurance has been a standard practice in the past, the purchasing of cyber risk coverage should be a standardized practice for you in the future.

One of the biggest problems in the cyber risk coverage area is that of knowing what coverage's to purchase. Because these coverages are an emerging product there are very little standards from which to compare apples to apples from carrier to carrier. Compounding this coverage selection choice is the fact that courts are blazing new territory with each and every lawsuit that takes place. The experts on all sides of this issue do not have definitive benchmarks and standards in place. The reason being is that because the cyber risk are emerging and the emerging coverage's are lagging behind. The risk of fire and the damage from fire has been around from the dawn of time. Cyber losses have really only come to the forefront within the last decade. Knowing your cyber risk exposures and dealing with him through cyber coverage within your small business insurance portfolio is a wise strategy to protect the assets of your business.

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