Cyber Liability Insurance

Cyber liability insurance covers the first and third party risks related to the Internet, e-business, intellectual assets and networks. Cyber liability insurance provides the most current protection for exposure to claims and lawsuits connected to Internet communication.

The risk category that cyber liability insurance addresses is known as first and third party risks. This category includes infringement on intellectual property, privacy issues, virus or worm transmission, or any other type of problems that may be conveyed from first to third parties via the Internet.

When Should I Consider Cyber Liability Insurance?

Any individual maintaining a Web site faces the same legal standards as a publisher. Although the Internet has created instant global communication, the Web has created a new set of liability issues as well, and cyber liability insurance is designed to protect against those issues.

Today, designing and producing a Web site takes very little time and knowledge of coding. A Web site that looks sophisticated is actually quite simple to create. However, the liability exposure that comes with that site is increasingly intricate. Privately held businesses that establish an Internet presence must handle liability exposure that is evolving, transforming and complex. This can be done with the right cyber liability insurance.

Even commercial enterprises that circulate information via the Internet must confront the same legal liability issues as publishers, yet many have only the minimum concept of their exposure. Furthermore, new legislation creates new potential liabilities in the categories of domain name infringement and user privacy on a daily basis.

Why Does my Business Need Cyber Liability Insurance?

General business liability policies are inadequate for addressing Internet risk exposure. Any business with an Internet presence needs cyber liability insurance for the following reasons:

  • The legal world of the Internet changes rapidly as new laws are passed to address issues created by the World Wide Web.
  • By distributing data to the public through the Internet, commercial enterprises face the same risk exposure as publishers. This includes risks to brick and mortar publishers such as defamation, copyright infringement, invasion of privacy, and evolving liability risks connected to the Internet.
  • The number of potential plaintiffs is almost unlimited when considering the vast number of users worldwide who surf the Internet. A potential lawsuit from only one of them could result in costly damages. In a recent case in 1999, a business inappropriately used the name and photograph of a famous athlete on its site. The athlete sued the business for the fair market value of his name and added damages totaling more than $750,000. Cyber liability insurance helps protect your business against such claims.

Cyber Liability Insurance: Finding the Right Quote

O’Kane & Tegay representatives have access to a range of highly rated carriers offering cyber liability insurance.

We can help you protect your business and those who work for you, by finding the coverage that best fits your company.

Learn more about your Cyber Liability Insurance options.

Call now to speak with one of the friendly agents in our San Francisco office, at 415-242-8777.

We will review your current coverage free of charge, discuss your current risks and search for the best insurance products to fit your business.