Beimdiek Blog

Cyber Liablity - Fact and Fiction

As a business owner it’s a daunting task to deal with all the challenges that come your way, from taking care of your employees to managing your bottom line, not to mention protecting your market share. With the increase of reliability on the internet and maintaining sensitive customer information, cybercompromises and data breaches have become daily headlines. Although we commonly hear about big companies being exposed such as Target and Home Depot, small to medium sized companies are being attacked at an alarming rate. Most customers should consider some additional coverages such as a Cyber Policy. Here are some facts and fiction about these policies:

Fact - Cyber Liability coverage can cover direct and indirect costs associated with a breach, ranging from breach notices, credit monitoring and defense costs.

Fiction - Commercial General Liability policies cover social media exposures. Unfortunately this isn’t true in most cases. Most CGL policies will not pick up this growing exposure, make sure you review you policy and measure you risk in this area. Cyber Liability policies will address this risk along with a properly written company policy.

Fact - Crisis Management and Business Interruption. Cyber Liability policies can help you get your systems up and running and provide some PR assistance to protect your reputation.

Fiction - Hackers only focus on big companies. This couldn’t be further truth, studies indicate that more than 31% of all cyber attacks are on smaller business with less than 250 employees and that number grew by 18% in 2013 (Symantec, survey 2013).

What are you companies questions or concerns?

If you would like to discuss this important coverage further, email me at

Beimdiek Insurance, solving tomorrow’s problems today!

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