Cyber Suite Spotlight: Network Security Liability
Businesses and organizations that maintain data on employees, members, students and others have a responsibility to protect that data, which is no small task. In today’s world, the risk of a security or data breach is around every corner, and it’s important to have a defense ready if this risk becomes a reality. Network Security Liability can be a key to that defense.
Cyber Suite Coverage includes Network Security Liability to provide defense and settlement costs in the event of a suit alleging that the insured’s failure to secure their own system caused damage to a third party. Unlike Data Compromise Liability, which needs to follow Data Compromise Response Expenses in order to be triggered, Network Security Liability can respond to incidents on its own. Coverage is triggered by suits that include:
- Unintentional forwarding of malware
- Breach of corporate data
- Unintentional participation of the insured’s system in a denial-of-service attack
Example: An organization experienced a cyber-attack that compromised its servers. Criminals hacked into the system and launched a ransomware attack against every email address in the insured’s system contacts. Many of these affected individuals filed lawsuits against the insured, claiming the organization failed to properly secure its network. Network Security Liability helped provide for the defense and settlement costs of these lawsuits.
For more information about Network Security Liability, contact your GuideOne Sales Director or Marketing Representative, or visit the Cyber Suite Resources page of GuideLink.
Read the series: A Benefits Overview, Computer Attack, Computer Fraud & Misdirected Payment Fraud, Cyber Extortion, Data Compromise Response Expenses & Liability Coverages, Electronic Media Liability, eRiskHub Service, Identity Recovery
© 2021 The GuideOne Center for Risk Management, LLC. All rights reserved. This material is for informational purposes only. It is not intended to give specific legal or risk management advice, nor are any suggested checklists or action plans intended to include or address all possible risk management exposures or solutions. You are encouraged to retain your own expert consultants and legal advisors in order to develop a risk management plan specific to your own activities.