Do you need Cyber Liability Insurance?

With social networking use increasing at an unparalleled rate many businesses are now taking their first steps into a world that has been dominated by personal use up to now.  However, social networking developments at a business level are increasing rapidly.

Social networking has been the communications phenomenon of the last 5 years and it has huge benefits for all.  But what are the risks for businesses that don’t prepare or plan properly for its usage?  Data theft, downtime, financial losses and reputation damage are just some of the problems that could ensue.  So, being prepared is vital and a cyber liability insurance policy can help mitigate these risks.

One hidden risk is from malware or viruses.  Not only can these damage computers and networks but they can also extract confidential data.  Make sure your anti-virus and anti-malware software is up-to-date and run daily.

Another risk for businesses is identity theft.  An employee’s online profile could contain details that, if misused, may compromise your brand and misrepresent your business.  Employees need to be cautious about what they disclose online.

Similarly, employees need to take care what they post online if there is a risk they may damage your business’ reputation.  Reputation is something that can be damaged quickly online and businesses need to be vigilant to respond to online criticism and negative comments.

With all this in mind, some businesses may be tempted to switch off social media in all forms relating to their business.  However, it is more useful to develop a robust social media policy especially as most employees access social media tools in and out of work.

Cyber liability insurance can provide protection in the event that your business is adversely affected.  It can help if your systems are hacked or damaged - providing compensation.  Additionally, it can provide compensation for multimedia claims and damage to third parties arising from libel, slander or copyright infringement.

Last reviewed 29/3/2012

To talk to an expert in your area and get a quote, contact your local insurance broker.