What Massachusetts Businesses Should Consider Getting Cyber Liability Insurance?
The vast majority of businesses in Massachusetts ought to consider cyber liability insurance, for its protections can help most businesses that rely on computer and/or the internet. A short (and non-comprehensive) list of businesses that might benefit from a cyber liability policies’ protections includes:
- Medical offices and practices that use EHR software
- Legal practices that send and store digital documents
- Financial firms that submit and record transactions over the internet
- Ecommerce businesses that sell through online stores
- Businesses that rely on cloud-based services
- Governments that store sensitive information online
- Nonprofits that keep donors’ financial information for recurring donations
What Coverages Are Included in Cyber Liability Insurance Policies?
There is a range of important coverages that cyber liability insurance policies may provide. Some of these include:
- Network Security Liability Coverage, which may cover hackers’ online attacks
- Extortion Liability Coverage, which may cover ransomware incidents
- Privacy Liability Coverage, which may cover non-criminal data breaches
- Media Liability Coverage, which may cover copyright and trademark infringement claims
Do Cyber Policies Cover Attacks by Ransomware Programs?
Ransomware attacks, in which files are seized until a payment is made, are becoming a more common threat. As mentioned, some cyber policies cover such attacks through extortion liability coverage.
Businesses that are particularly concerned about this threat ought to work closely with a specialized agent who understands the risk and available insurance protections. An agent who’s well-versed in cyber policies will be able to explain what a policy would cover should a ransomware program successfully lock files. 
Do Businesses Need Cyber Policies with Errors and Omissions Coverage?
Errors and omissions coverage is found in some cyber policies, but the policies that offer this coverage a usually designed for businesses that offer cyber services. The E&O coverage, in particular, is typically suited to meet the risk mitigation needs of software-as-a-service, cloud-based service and other tech-focused companies.
For businesses that offer computer- or internet-based services, having a cyber policy that includes E&O coverage might be a very good idea. For businesses in other sectors, getting E&O coverage through a separate policy that’s targeted for a more appropriate industry is usually a wiser choice.
How Can Businesses in Massachusetts Purchase Cyber Insurance?
Now that cyber policies are so important and widely used, there are several ways to purchase the coverage. It’s widely available through stand-alone policies and commercial package policies, and some business owners policies offer the coverage as a standard or optional protection. For many businesses, one of the package policy options (i.e. a commercial package policy or business owners policy) makes the most sense because it lets businesses bundle their cyber policy with other policies that they need.
For help finding cyber insurance that suits your Massachusetts business’ needs, contact the experienced and independent insurance agents at Charles River Insurance. Our agents have helped many businesses find coverage, and they can get your business the best available policy since they’re independent agents who are free to compare policies from different insurers.
