If your business processes credit cards online, you may need cyber liability coverage. It’s become increasingly common for hackers to break into virtual databases to steal credit card records. In most cases, the liability for these malicious attacks falls on you as the vendor, not the credit card company. In addition, you could face fines and higher processing costs if your system did not meet Payment Card Industry (PCI) data service standards that might have prevented the breach.
If your database is hacked, your regular business coverage may not protect you from legal claims for identity theft, financial losses and privacy violations. Cyber liability insurance fills this risk management gap. It can help cover the cost of investing a claim against your firm, mounting a legal defense and paying damages.
Because it’s fairly new, definitions of cyber liability insurance vary. Here are a few things to look for:
1) Coverage for attorneys, investigators and auditors needed to verify compliance with PCI standards.
2) Coverage for attorney fees, legal costs and damages related to identity theft, privacy and negligence claims.
3) Coverage for audits necessary to prove PCI compliance after an incident.
Chivaroli and Associates Insurance Services is a full-service brokerage firm specializing in the custom-design and placement of insurance and alternative risk funding solutions for your healthcare organization.