Cyber liability for the cyber security contractor.
As a cyber security contractor, you might not think you need cyber liability insurance as part of your cyber security contractor insurance policy. However, it’s actually one of the more important coverages to have. There are two main types to consider. First-party cyber liability insurance helps cover your business in the event of a breach. Hackers could steal clients’ credit card numbers or other sensitive information. First-party cyber liability insurance may help cover expenses resulting from cyber extortion demands, client notification, and client credit monitoring.
What’s the other beneficial liability policy?
In addition to first-party cyber liability insurance, you’ll also want to look into third-party cyber liability insurance. Third-party cyber liability insurance is what helps protect you in the event your client suffers a data breach and sues your company. You could be facing a lawsuit if your client believes you were negligent in preventing a cyber-attack. This coverage may help cover expenses related to client lawsuits like court costs and attorney fees. Therefore, as a client-facing business, it’s important to consider this coverage.
Mistakes can happen, insurance may help.
Cyber security can be a complicated field so it’s easy to understand how mistakes can happen. What if an error in your coding leads to a client data breach? Perhaps you miss the signs of a hacker in your system and they manage to break through and steal information. Or, maybe you miss an agreed-upon deadline. All of these and more can lead to expensive lawsuits. Consequently, errors and omissions liability insurance (E&O) should be considered as part of your cyber security contractor insurance. Unlike third-party cyber liability insurance, E&O liability insurance helps cover the costs of lawsuits that stem from work performance as opposed to a data breach.
Dishonesty is an unexpected problem.
When you hire your employees, you never doubt whether they’re trustworthy or not, which can sometimes come back to bite you. Your employees have access to your clients’ sensitive data and network as well as yours, which puts them in a prime position for potentially committing a crime. Therefore, fidelity bonds, also known as employee dishonesty bonds, are an important part of your cyber security contractor insurance policy. This policy may protect you and your clients in the event that an employee steals data, money, and even property from your business or from your clients.
Round out your cyber security contractor insurance.
Cyber security contractors face some unique risks, but there are still some standard coverages you may want to consider as part of your cyber security contractor insurance plan. As a contractor, it’s likely you’ll have to travel to client sites for network setup, monitoring, or other services. Business auto insurance may help cover damages to your vehicles while they’re being used to conduct company business. In addition, commercial property insurance may help protect your company’s building and most things in it from loss caused by fire, theft, flooding, or other named perils. Finally, your employees often work with electronics, which could cause injury. Workers’ compensation insurance may help cover lost wages and medical expenses in the event that an employee gets injured on the job.
You’re busy protecting your clients’ security, insurance may help protect your business. Contact us to learn more about cyber security contractor insurance coverage.