• Banks and financial institutions, which handle customers’ account numbers and details
• Stores and online retailers, which process customers’ credit and debit card numbers
• Media Liability Coverage
• Network Security Liability Coverage
Cyber insurance is a specialized form of commercial coverage designed for threats that come with conducting business over the internet. Policies generally help protect businesses in Vermont from data breaches and online attacks.
Cyber insurance is still a relatively new form of coverage. As businesses become increasingly reliant upon online data and processes, though, this coverage is becoming increasingly common.
Most businesses in Vermont can benefit from having a cyber liability policy, for there are few businesses left that don’t use at least some online data. Even restaurants that take customers names and contact information via online reservation systems may want a policy in case diners’ details are ever compromised. Some other examples of businesses that may want coverage include:
In addition to businesses, many nonprofit organizations and government agencies may also want to consider getting this coverage. Both nonprofits and governments frequently process highly sensitive data that they could ill-afford to have compromised in a breach or attack.
Because cyber liability insurance is relatively new, there isn’t a single set of protections that every policy protects against. Instead, there are several coverages that a policy might offer coverage
(Errors and omissions coverage is often only purchased by companies that offer IT-related services, such as software developers, network security providers and IT consultants.)
Just as their coverages can vary, the expenses that cyber liability policies will reimburse or pay for can also differ from one policy to the next. Depending on a particular policy’s terms and conditions, it might offer compensation for the following expenses associated with a covered claim:
Although many commercial property policies offer coverage for computers and hardware, cyber liability policies generally don’t duplicate protections found in commercial property policies.
Most commercial property policies only cover the hardware itself -- and not data stored on the hardware. If they do offer any protection for stored data, it’s typically minimal. Cyber liability policies are specifically designed to fill this coverage gap and help protect the data that businesses have on computers or servers (or in the cloud).
Because cyber insurance is a fairly new form of coverage and has yet to be standardized, it’s especially important to work with an agent who specializes in this coverage when looking for a policy. Businesses in Vermont should contact an agent who’s independent and familiar with cyber liability policies. Such an agent will be able to compare different insurers’ policies, and they’ll know what differences to look for in various policies.