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cyber liability insurance

Cyber Liability: An Overlooked Necessity in 2017

By June 21, 2017April 26th, 2019No Comments

No matter the type of business you’re in, scammers and hackers always seem to be knocking at the door. Whether an email attachment caused a breach in the firewall or a hacker leaked confidential information, Cyber Liability Insurance provides coverage for the services needed to regain your customers’ and the public’s trust.

Why Cyber Insurance?

Flashback 20 years to the age of the Internet. Technology coverage was brand new and was covered under a company’s Errors and Omissions (E&O) Insurance. At this point in time, company’s were concerned with the spreading of computer viruses that would bring down the company’s network.

Today, company’s are fighting a whole new battle. Forbes has cited Anthem Health Insurance’s breach as the largest in 2015. The breach exposed 80 million patient and employee names, dates of birth, Social Security numbers, home addresses, email addresses, and more.

Anthem is not the only company to suffer. In 2016, we saw the likes of Yahoo!, Cisco, LinkedIn, and the U.S. Department of Justice join the hacked list. There is only so much a company can do to prevent a cyber breach, which is why Cyber Liability Insurance is becoming a necessity for risk management.

What is Cyber Liability Insurance?

The Cyber Liability Insurance of today is more often than not compromised of the four following coverages: Errors and Omissions, Media Liability, Network Security, and Privacy.

Errors and Omissions

E&O coverage protects your business from claims resulting from negligence or the failure to perform a service. An example of this type of negligence would be if you sell used office equipment and forget to wipe a hard drive before you sell the used product.

E&O insurance is a necessity for any business that provides a service for or product to a customer for a fee.

Media Liability

Media Liability is very similar to Errors and Omissions in that it too protects against negligence. Such negligence would include infringement upon another’s intellectual property, copyright or trademark, or engaging in libel or slander.

Network Security

A failure in network security is to blame for a lot of data breaches. Therefore, it is important that every business has this type of coverage, especially since it is becoming a matter of when a company will have a breach and not if a company will have a breach in network security.


A privacy breach is not always related to a network security failure. Privacy Liability coverage protects against any breach of private information. For example, pretend your company collects private client information through an online form. If an employee were to print off the information and not properly destroy the document, your company would be liable if the information were to get into the wrong hands.

The MacKenzie Agency is a member of Truck Writers’ Family of Fine Businesses. MacKenzie works with its business clients to tailor a policy to suit various insurance needs. To learn more about Cyber Liability Insurance or its other insurance offerings, contact a MacKenzie agent today.

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