Internet Liability Insurance, also known as Cyber Insurance, is a type of insurance product designed to protect businesses from the risks associated with conducting business online. This type of insurance helps cover a variety of digital risk exposures including, but not limited to, copyright infringement, libel, and violations of privacy.
Key Coverages
Copyright Infringement: Protection against legal liabilities incurred due to the unauthorized use of copyrighted materials such as text, images, music, and/videos.
Libel: Includes coverage for allegations of defamatory statements made about a person or entity in a digital medium which hurts their reputation.
Violation of Privacy: Covers damages from incidents such as data breaches, unauthorized data access, and the misuse of personal data.
Reasons for Coverage
As reliance on digital communications and e-commerce continues to grow, the potential for legal complications does as well. This insurance focuses on addressing specific liabilities and potential financial losses linked to them. Cyber Insurance is essential for:
- Online retail businesses
- Content creators and digital broadcasters
- IT service providers
- Businesses handling sensitive client data
For a more comprehensive understanding, refer to guidelines and lawful directives implicated in digital communications and trade such as the General Data Protection Regulation (GDPR) and the relevant sections of U.S. Copyright Act of 1976.
Who Needs Cyber Insurance?
Any business with an online presence can benefit from Cyber Insurance to safeguard against the unpredictabilities that come with handling personal and copyrighted data. Email attacks, breaches of customer data, hacking incidences can cause substantial disruptions and financial waste, putting purchasing this insurance on top priority for these businesses.
