Cyber Liability Insurance is required for EVERY commercial risk, whereas any of the other lines of business in the management liability portfolio may not be needed. Consider that:
- D&O is essential to have when a Company has a board of directors or multiple partners with ownership interests. Many private small businesses do not have either of these, and immunity laws in many states do offer some level of liability protection for nonprofits.
- EPLI is essential to protect you from employment-related claims. Many small businesses have no employees. Others are not subject to certain employment protection laws due to their small size.
- Fiduciary Liability is essential when you are a plan sponsor or administrator of any ERISA plan.
- Kidnap/Ransom and Crime Insurance are funny. KR is needed mostly for high profile business owners or executives. Small business would not need this coverage.
- Crime is essential when you have employees handling your money or your customer’s money. Not every business has this.
But Cyber Insurance is needed by everyone, because every business has data, written or electronic, and every business has exposure to all kinds of Cyber events through its leading cause, unintentional employee negligence. Our Cyber Insurance Source area speaks more specifically to this important coverage.
Ransomware and Cyber Extortion
The FBI released a document specifically to assist businesses with understanding what ransomware is, how to protect against it, and how to respond to it when it occurs. This is an excellent resource for your customer to have. A copy can be downloaded from here: Ransomware Prevention and Response for CEOs (PDF)