Cyber Liability

cyber liability

Cyber liability

Everyone is familiar with the data breaches of the “big” stores and businesses but any size business is at risk for a data breach. Businesses which use technology whether it be smart phones, tablets, laptops or a network are vulnerable to cyber threats. If your data is being hosted internally or if you are using an offsite, it is important to validate how that data is being secured.

There are steps which can be taken to minimize the fallout from a cyber event:

  • Assess the risk
    Corporations of all sizes that hold any information that can be deemed private or personal need to have a plan in place for the “what might happen” scenario. Businesses should work with their agent to be sure they have adequate coverage that will reduce their risk and they are familiar with policy exclusions, and ensure that they are insured to cover the types of information that will be affected and the resulting exposures from a breach.
  • Make a plan
    Your business should have a plan in place on how “data” is used. All employees should understand they are responsible for protecting any private information. Are there privacy policies in place? Do they have a confidentiality agreement? Are their devices that have any connection to the business secured with passwords and those are not shared?
  • What if there is a breach?
    • Identify the applicable insurance policies.
    • Provide the insured with the required insurance notice requirements.
    • Detail any specific insurance policy requirements (i.e., third-party forensic experts must be selected from the insurance company panel in order to be covered by the insurance policy).
    • Arrange a call between insurance broker legal cyber incident claims specialist and the insured.
    • Determine whether, and in what manner, notice is required to insurers.
    • Describe past cyber incident best practices that reduce the total cost of risk.
    • Maintain consistent and timely communications between the insured and the insurers.


The best advice is to be proactive in protecting your data and making sure you have adequate coverage with a cyber liability policy which our independent agents here at Bakker Agency can provide. Want another interesting read? Check out this article by Heimdal Security at

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Bakker Agency • Main Office: 302 West Main Street, Suite 206 • Avon, CT 06001 • 860-676-1957
Branch Office: 4 Bridge Street • New Hartford, CT 06057 • 860-379-8555
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