Most individuals and businesses underestimate or are completely unaware of the common cyber threats that are targeting their personal information across social media sites and through Internet-connected devices ranging from laptops, smartphones, tablets, and desktops to voice assistants that include smart refrigerators and thermostats.

As our world becomes more digitized and information itself is one of the most valuable commodities it’s important to understand the risks of a data breach. Therefore, in this first blog in a series, we will explore why a business might need cyber insurance and what it may protect them against.

What are some of the most common cyber exposures businesses might face?

Many businesses have a cyber exposure due to some or all of the following (not an all-inclusive list):

• Collection of private information on employees, clients, vendors, etc.
• Data storage both active and at rest
• Data can be found on computer systems and/or software, including but not limited to hard drives, flash drives, disks, CD‐ROMs, tapes, laptops, tablets, personal device accessories, and third‐party locations (i.e., Cloud).
• A website and/or social media presence
• Access to the Internet and integration, sharing or transmission of data and/or communications with others via the Internet
• E‐commerce business transactions
• Credit card transactions
• Errors and Omissions (E&O) or professional liability cyber exposures
• Internet Of Things (IOT) and the communication systems through imbedded chips, such as smart homes
• Subject to state, federal, and foreign laws governing data protection
• Cyber Asset Exposure
• The value of many businesses' cyber assets may be much greater than the value of tangible business personal property as cyber assets include all types of electronic data including intellectual property.

Although there are many cyber exposures a business can possibly face, not all of them are typically covered by Cyber Liability insurance.

For this reason, it’s important to understand what Cyber Insurance intends to cover when protecting a business.

What Is the intent of Cyber Insurance Coverage?

• Cyber Insurance Coverage is intended for users of computer systems and of other technological products and services, including those businesses that use the Internet or have an Internet presence.
• This includes, but is not limited to businesses that have a computer system, send or receive e‐mails, maintain a website, use various forms of electronic advertisements, use the Internet to transact business or download information, conduct online sales, conduct webinars, blogging, social media, bulletin boards, contract bidding, etc
• Cyber Insurance Coverage is also intended for those who have care, custody, or control (CCC) of data for others
• This can include the collection, transmission, and storage of private information on consumers, employees, vendors, etc.
• Many Cyber Insurance Policies are designed with various insuring agreements that allow the named insureds flexibility to choose the coverage(s) that fit their business needs.
• Coverage is needed to protect a business from a variety of exposures, including new and/or evolving exposures.
• These businesses may have a need for Cyber Insurance Coverage to protect against liability (third party) losses, first-party losses, and/or both.

In our next series Part 2 – What is Cyber Liability (First Party) Insurance Coverage we will take a deeper drive into First Party liability coverages and how they can protect your business

We provide Cyber Liability Insurance for all types of firms in Newton, Needham, Wellesley, and all of Massachusetts. Contact Kovalev Insurance for cyber liability insurance and request a complimentary consultation to ensure your business is properly protected.