Common Small Business Cyber Liability Claims

While big business cyber breaches frequently make news headlines with their massive payouts, small businesses are at great risk for cyber-attacks, as well. As smaller operations are more vulnerable to financial detriment, adequate Pennsylvania Cyber Liability Insurance is recommended to mitigate risk. Below are some popular liability claims that smaller businesses commonly face.

Business Interruption- This occurs when operations are forced to cease due to power outage, storms, disaster, etc. In terms of cyber liability, a hack might put your business in jeopardy if the attack disables your business’ ability to transmit data, says Divinsurance.

Cyber Extortion- Similar to any ransom request, a hacker could request that you pay them off in exchange for them releasing control of accounts, social media, and websites. Cyber liability would reduce the burden of these claims and payouts while also making up for any lost revenue as a result of this attack.

Intellectual Property- Social media and online presence poses a variety of liability risks for companies, mostly without their knowledge. Anything that is posted on these sites, whether on accident or on purpose, is subject to legal action. In addition, infringing on copyright and trademarked provisions can also land your small business in hot water.

Third-Party Damages- In a digital age, businesses are reliant on electronic communication with others. However, if your systems and security are at fault for a third party’s virus or breach, your company will be held liable for financial and legal damages.

Missing Data- According to Insurance Risk, this occurs when confidential information is lost or stolen. For example, if an employee’s laptop that was equipped with sensitive information and passwords was lost, defensive lawsuits may result.

At GMG Insurance Agency, we understand the portfolio is risk that small businesses like yours face. We seek to provide comprehensive coverages to ensure your operations are secure. For more information about our products and services, we invite you to contact us today at [phone].