Cyber Liability for Entrepreneurs

From B. Janelle Jordan, CIC, Commercial Insurance Sales Executive, USI Insurance Services LLC:

Lawsuits pertaining to cyber activities are ever-growing.  The insurance industry is trying to develop more and more coverages to address the exposures associated with cyber liability by revising the wording in their liability and property policies to more clearly include coverage or exclude coverage associated with the Internet and/or electronic data (if excluded, the insured can obtain a separate and more specific policy such as a stand-alone cyber liability policy). 

If you have a business, you have to ask yourself where your exposure is and then obtain a policy(s) that address those exposures.  The major areas of cyber liability are Security, Privacy, Intellectual Property, Media/Content, and E&O. 
Privacy Liability is the issue that most people associate with cyber liability due to the publicity of some high profile privacy breaches over the last couple of years such as TJX, the Gap, and Ohio State University.  The notification cost associate with these security/privacy breaches is a huge concern for companies with transactional websites or who store sensitive or critical data.  But they are not the only companies that have a cyberliablity exposure.  Anyone with a web site may be held legally liable for damages.
The best method of protecting yourself is to have a discussion with your agent.  If you have a web site, there are affordable coverages out that there that can be endorsed to your policy.  If you are an Internet advertiser or publisher, an e-commerce company, Internet service provider, or if you provide telecommunication and media technology services, then you you may want to go one step further and consider contacting an Internet risk manager to discuss your exposures.  
B. Janelle Jordan, CIC
Commercial Insurance Sales Executive
USI Insurance Services LLC
300 E Main St, Ste 1300
Norfolk, VA  23510
direct: 757-640-5466
toll free: 800-733-7475 ext 35466
fax: 610-537-4234
[email protected]

From Lindsey Eversole, VTKW Member Services Director:

All VT KnowledgeWorks and Virginia Tech Corporate Research Center companies are invited to an insurance seminar on Thursday, November 20, 2008 at 2 p.m. in the RBXII conference room hosted by Janelle Jordan of USI Insurance Services, the 8th largest insurance brokerage firm in the United States.  The seminar will address the insurance needs of Technology and Biotechnology companies at the three Primary Stages in the life of a business, including when the business is emerging, growing, and transitioning.   You will learn about WHAT coverage is needed, WHEN the coverage is needed and WHY you need specialized coverage to protect and grow your company’s assets.  USI specializes in directors & officers, professional, fiduciary, employment practices, foreign, IP, and cyber liability. 
If you are interested in attending the seminar please RSVP to [email protected] or 540-443-9100.  

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