Who needs Cyber Liability Insurance and who needs Technology Errors & Omissions Insurance?
All Companies should have Cyber Insurance.
Not all Companies need Tech E&O Insurance
Many businesses rely on technology to function. With that comes a lot of opportunities for something to go wrong. Insurance is a great way to protect against a lot of these problems.
Getting the right insurance is the tricky part.
Understanding a little about what each type of policy does can help.
Cyber Insurance
Every company that uses technology as part of its day-to-day operations should have a Cyber Liability Insurance Policy, especially if they are storing any kind of client information.
Cyber Liability Insurance protects against a variety of problems that arise during a data breach.
Examples of Costs that CAN be Covered on a Cyber Liability Policy. (More on this Here)
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Customer Outreach (notification costs)
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Call Center Support for your customers
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Reputation Management
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Computer Forensics
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Regulatory Expenses
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Extortion or Ransom Payments
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Damage to your Software or Network
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Lost Income
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Data Rebuild
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Electronic Theft of your Financial Assets/ Electronic Fraud
These are just some of the expenses that can be covered by a Cyber Insurance Policy.
Technology E&O Insurance plays a different role.
It often includes many of the coverages of a Cyber Liability Insurance Policy.
Most businesses have a common General Liability Policy.
This is meant to cover damages that result in Property Damage and Bodily Injury.
Technology E&O Insurance is intended to cover incidents that result from an error or omission by the insured business that results in an economic or financial loss to a third party.
Technology E&O Insurance covers businesses that provide technology services to others such as:
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Internet Service or Access Providers
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Web Designers and Consultants
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IT Service Companies
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Software Developers
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Data Storage Companies
Some examples include:
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A programming error from a web consultant disrupts a client's website and does not allow them to transact business, as usual, resulting in a loss of income and or clients.
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An IT service provider fails to install patches in a timely manner resulting in a security breach for their client.
In both of these cases, a mistake (error or omission) in providing their service led to their client having a claim that would result in “economic or financial loss”.
A qualified Insurance Agent can help you decide what coverages your business needs.
Questions? Ask us here.