Cyber Liability

From “online only” to brick-and-mortar operations, technology is now an integral facet of nearly every business.

Safeguard Your Organization Against Cyber-Attacks.

With great technology comes great responsibility to protect your sensitive data.

Although technology opens doors for new opportunities, it also creates the threat of cyber risks. This technology-dependent economy presents a new challenge for businesses when it comes to protecting sensitive data. BKS Partners understands the importance of educating our clients on their options to protect their business and themselves from data breaches.


Depending on the policy, cyber liability spans a broad spectrum of coverage. Privacy liability network security can protect against negligence or failure to safeguard confidential data, including acts of rogue employees or vendors. Network security covers loss from a Denial of Service (DOS) attack or Unauthorized Access to Records.

Data Breach Stats

  • 83% of data breaches come from external sources.
  • 85% of internal data breaches come from employees.
  • 74% of data breaches are discovered weeks or months after the compromise.
  • 86% of data breaches are first discovered by a third party.

Insurable First-Party Internet Risk

The primary purpose of a network security & privacy liability policy is to provide liability coverage for third party claims caused by a privacy breach. First party coverage can provide reimbursement for certain expenses incurred prior to, or regardless of, the filing of a subsequent claim—making it a form of balance sheet protection. First party coverage can be insured under these policies:

  • Privacy breach expense
  • Cyber extortion & extra expense
  • E-business interruption & extra expense
  • Data restoration & extra expense

Privacy Breach Expense

A company is potentially exposed to a data breach simply by collecting, storing, and/or transmitting data. In the event of a data breach, the organization faces the threat of costly litigation, substantial response and remediation costs, regulatory fines and penalties, and devastating reputational harm that can result in a loss of clients. First party expense reimbursement may be available for:

  • Forensic investigation expenses
  • Legal expenses to determine notification obligations under state and federal statuses
  • Notification expenses including letter drafting and call center support
  • Credit monitoring programs
  • Public relations and media expense

Cyber Liability Services

Cyber Extortion & Extra Expense

This type of coverage can be equated to kidnap and ransom insurance for computer systems. A common tactic in cyber-extortion scenarios is to threaten to incapacitate the victim’s transactional website or other components of their information system, known as a DOS attack. This coverage provides money to the insured to meet the demands of the extortionist, but also provide resources to help navigate and negotiate the situation.

E-Business Interruption & Extra Expense

An e-business interruption policy helps reimburse profit loss in the event of a business’ inoperability resulting from interruption or suspension of the company’s computer system due to a security breach. Other operating expenses that can be reimbursed are payroll and forensic expenses.

Data Restorations & Extra Expense

This coverage reimburses the costs incurred to restore electronic data that has been lost due to the unauthorized access of their system, the introduction of malicious code or virus, or a DOS attack that causes loss or damage to data. Although most companies have data backups stored in a secure location, extra expense can still be significant.

Ensure your protection is as distinctive as you are.

Get In Touch With A Commercial Advisor!

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