Cyber Liability

High-profile cyber attacks on companies such as Target and Sears have raised awareness of the growing threat of cyber crime. Recent surveys conducted by the Small Business Authority, Symantec, Kaspersky Lab and the National Cybersecurity Alliance suggest that many small business owners are still operating under a false sense of cyber security.

The statistics of these studies are grim; the vast majority of U.S. small businesses lack a formal Internet security policy for employees, and only about half have even rudimentary cybersecurity measures in place. Furthermore, only about a quarter of small business owners have had an outside party test their computer systems to ensure they are hacker proof, and nearly 40 percent do not have their data backed up in more than one location.

Technology Errors and Omissions

Every business has unique risks that can seriously harm an organization’s operations if not properly protected against. As a business utilizing technology to produce and deliver products and/or services, it’s important to recognize and take precautions against risks that your commercial general liability (CGL) coverage doesn’t include. Technology professional liability coverage, also referred to as tech errors and omissions (E&O), is essential for companies using technology because it addresses a lack of protection in CGL policies, which typically do not cover claims of third-party financial harm.

Tech E&O coverage would apply in the following situations:

A mistake was made and an error in the code of a website or program your company produced isn’t found before it is implemented. A third party depends on this product or service to operate its business and its operations are stalled due to the error, causing them a financial loss.

In this case, CGL coverage would not cover a claim or any costs of litigation because of the presence of an error or omission and the lack of resulting physical damage to the third party’s property. It should be noted that tech E&O policies usually exclude product recall, but some will accept damages for loss of use of a failed product.

General Liability

The only way to effectively protect the assets of your business is to carry adequate Commercial General Liability (CGL) insurance coverage. CGL protects your business from damages caused by bodily injury or property damage for which your business is found to be legally liable.

What Does CGL Cover?

A typical CGL policy provides coverage for claims of bodily injury or other physical injury, personal injury (libel or slander), advertising injury and property damage as a result of your products, premises or operations, and can be offered as a package policy with other coverages such as property, crime, automobile and more. As a safeguard against liability, CGL enables you to continue your normal operations while dealing with real or fraudulent claims of negligence or wrongdoing. CGL policies also provide coverage for the cost to defend and settle claims.

Workers Compensation

Worker’s compensation is a no fault policy that covers employees in case of a job related injury.  This coverage pays for medical expenses and lost wages (usually ¾ regular wages) if any employee is injured in the course of their job.  Worker’s compensation even covers on the job accidents that result in an employee’s death.  Almost every state requires by law that companies have this coverage, but each state’s specific requirements may vary.

Commercial Auto

A commercial auto policy covers the auto liability and/or auto physical damage coverage.  Other coverage options are available upon endorsement.  Liability insurance coverage is required by most states for personal and commercial auto.  Since the company car can be tied back to the company itself, it is important that the company has the appropriate limits in place to cover its risk exposure.  A company potentially has much more to lose than an individual may have.  Evaluating the risk exposure is the first step in acquiring the appropriate commercial auto coverage.

Excess Liability

Excess liability insurance (ELI), more commonly known as umbrella insurance, is one of the most important types of insurance your company can buy. It can protects your business from holes or limits in existing policy coverage as well as from financially draining lawsuits. Just as you carry an umbrella to protect you from a potential downpour, ELI protects your company from the types of claims that could close your business. 

For more information or to get a quote, visit: http://cyber.aiasc.com/