Network Security Insurance Explained

Network Security insurance coverage protects you from losses associated with unauthorized access to or theft of your data or e-business activities, computer viruses, denial of service attacks, as well as alleged unauthorized e-commerce transactions.

The new digital world of network connectivity has served to significantly expand exposures to internal and external dangers. Data/system integrity problems, denial of service losses, and security breaches could all cause you to suffer significant revenue losses as well as represent a catastrophic blow to your organization's reputation. Network security insurance is required to cover the potential losses by electronic theft or sabotage.

The likelihood of a systems or Internet attack grows each day. Speculation of the impact of cyber-terrorism in recent months has increased everyone's awareness of the vulnerability of our country's infrastructure and the susceptibility of any business to computer attack.

Disgruntled employees or vendors are still the major perpetrators of network sabotage. Few companies have the culture of internal security that can protect it from these internal attacks.

In addition to Network Security Insurance, we recommend any company to have a formal security program in place to protect against hackers, information extortionists, malicious code, and other exposures. Any company that has a computer network should have a hazard risk and vulnerability assessment carried out.

Traditional policies cannot be relied upon for protection from electronic losses. Property and casualty policies usually cover tangible property.

Many companies are unaware that their current technology and business insurance policies most likely do not cover them for all of their technology-related risks as network security exposures are often excluded on property and casualty policies.

Investors in venture funded companies might require you have to have Network Security Insurance. Many venture capital firms now will not fund a technology-based company unless it has network liability coverage. Likewise, companies that are going public today are facing increased accountability and cannot risk leaving themselves vulnerable to electronic sabotage.

Network Security insurance is an essential coverage for both private and public companies.