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What is Cyber Liability?
Cyber liability insurance protects those who engage in online sales and communications.
Why is this coverage needed?
General Liability policies typically EXCLUDE web-related activities, leaving clients unprotected against claims. Cyber liability should be considered if you have a website, a blog, a message board or other online community and/or sells products or services online.
What is covered?
Covers claims alleging any of the following:
• Defamation
• Unauthorized access (“hacking”)
• Invasion of Privacy
• Errors and omission in content
• Copyright/trademark Infringement
• Introduction of Malicious Code/Virus
Claim examples:
A hacker infiltrated an online shopping website and stole 300,000 customer credit card numbers. The website faced claims from the customers for unauthorized charges made on the credit cards.
Claimant sued an online magazine alleging it published his picture without permission.
The claimant, an unsuccessful candidate for County Sheriff, alleged that a website owner allowed defamatory postings to be published on its website which caused him to lose the election.
Owners of video footage sued a website owner for copyright infringement, alleging the website streamed the footage for webcast on the site without permission. There was an issue about whether the party from whom the website owner had obtained the footage actually owned the rights in the video footage to transfer.
Companies that unknowingly spread a worm, virus or other corrupting file via email to third parties could face liability from those third parties for revenues lost as a result of the virus overloading the third parties' computer network.
(Source: www.mediaprof.com)
How much does it cost?
Typically, cyber liability premiums are based on the amount and type of user-generated content, and online sales. For example, if an informational website generates annual online sales of $300,000-$500,000, then we would estimate the premium to be $5,000-$7,500 (subject to underwriting of the overall exposures).
What is needed to obtain a quote?
Submit a completed questionnaire to Momentous Insurance Brokerage today.