Cyber Liability Insurance Hawaii Policy Information
Cyber Liability Insurance Hawaii. What is "Cyber Liability?" Any personal data that you keep on clients, donors, vendors or employees over the past five years or so can be at risk. Every name, address, date of birth, social security number, credit card information, health data and other identifying data is considered "a record." Every data breach costs an average of roughly $214 per record (as of 2017) to resolve. The average loss is about 20,000 "records." At $214 per record that's a $420,000 average loss.
It's important to understand that your Commercial General Liability (CGL) policy does not cover data breaches. You will need cyber liability insurance Hawaii to protect your data.
Cyber liability insurance Hawaii protects your data from unauthorized use with rates as low as $37/mo. Get a fast quote and your certificate of insurance now.
What Is Cyber Liability Insurance?
Cyber liability insurance Hawaii covers liability which arises out of unauthorized access to or unauthorized use of electronic data or software which is stored, operated and used by your company. Basically, it covers data theft and the spreading of viruses. It is important to note that it covers negligence, error or omission associated with data and software use as well. For instance, if an employee of yours sends the personal information of a client to another client's email accidentally, the policy will cover the error.
Cyber Liability Insurance Protections
It is natural to ask yourself what the difference between cyber liability and traditional liability coverage is. It comes from the fact that the traditional insurance covers only tangible assets if the policy offers business property coverage. For example, with a traditional policy, you will be covered against loss of documents due to negligence, error or omission. These are typically physical documents stored in your office. Any client data which you store in an electronic database is not covered by a traditional policy.
The main item covered by a cyber liability insurance Hawaii policy is network privacy. It protects you in case a client or a member of the public has suffered loss or damage due to your inability to protect sensitive data stored on your network. The issue typically arises from data thefts and leaks. Network security is covered as well. The policy will kick in to cover your liability in case there is a data breach or users are unable to access the data which they are entitled to.
One of the latest additions to this type of insurance is the electronic media coverage. It covers you in case of defamation, libel, and slander, breach of confidentiality, invasion of privacy or copyright infringement arising out of the publication of electronic data on the web. Usually, all types of websites including the social media are covered.
Overall, cyber liability insurance Hawaii coverage is quite useful to all businesses which keep and use electronic databases and software utilizing private data. The available policies are highly customizable to meet the needs of the particular company. No matter whether you have a large company, run an online store or operate a small bike shop, you will find a cover which matches your needs and budget as well.
Why Your Company Needs Data Breach Insurance
HI cyber liability insurance is a stand-alone policy that is designed to protect businesses against such attacks and the cost and penalties incurred during the whole process:
Penalties and Investigation Costs - If the data related to the credit information of your customers is lost to a hacker then in that case your business could be facing severe penalties by law enforcement authorities. Under the agreement of merchant services, a business would be responsible for paying the investigation cost, reassurance cost of credit card and the fraud carried out on stolen credit cards. These costs can reach thousands of dollars even for a small and medium sized business. Cyber liability insurance Hawaii covers you against those penalties and costs.
Cost Of Rebuilding A Reputation - A company's reputation is its most valuable asset. A breach of a company's electronic network can harm its reputation which may result in decreased sales. Insurance covers the cost of hiring a PR firm to restore the company's image in the minds of customers and also compensates the firm for the loss that the company has faced because of a cyber attack. Some the largest and most damaging data breaches are listed here:
- Adobe Systems
- Dun & Bradstreet
- Home Depot
- JP Morgan Chase
- Neiman Marcus
If it can happen to the massive companies with millions of dollars to spend on data protection, it can happen to your small business too. And small business owners do not have the deep pockets to weather the storm of a huge reputation hit after a data breach - like large corporations do.
Risk Management Services - Big business firms already have a risk department that works on reducing the risks faced by the business, so that the probability of such an event can be reduced. But small and medium sized businesses mostly do not have a proper risk management team. By purchasing cyber liability insurance, your IT related risks would be assessed by your insurer in order to accurately price the policy. This assessment report can also shed light on how you can better manage your cyber related risks without really having an in-house risk management department.
Compensation for Interruption Caused by Cyber Attacks - You may be thinking that a cyber attack may temporarily halt your business activity, so it would be covered by business interruption insurance; however a business interruption only covers your business when a damage to physical property occurs. In case of damage to your networking systems, business interruption insurance will not cover you. Cyber liability needs to be purchased in order to be compensated for the income lost due to cyber attack.
Data Breach Insurance
A data breach could destroy your business reputation and everything you've worked for in your business. This is why it's important for you to find the right cyber liability insurance policy to protect your company - regardless of its size.
Hawaii Economic Data, Regulations And Limits On Commercial Insurance
Location is one of the most vital factors that prospective business owners need to take into consideration when they are thinking about establishing an operation. You can have the best possible products and offer the most exceptional services, but if the location doesn't offer a market that can benefit from those goods and services, your business will have difficulty thriving.
As such, if you are an entrepreneur who has set your sights on Hawaii for the headquarters of your business or a new division of an already existing corporation, it's a good idea to familiarize yourself with the state's economic data. It's also important to understand what type of commercial insurance you will need to invest in to protect yourself, your employees, your vendors, and the clients you serve.
Below, we provide a brief overview of important economic data and the commercial insurance requirements for business owners in the Aloha State.
Economic Trends For Business Owners In Hawaii
A state's unemployment rate is a good indicator of the overall economy of the region. It indicates that there are enough jobs available to support the economy, which is a direct reflection of the success of businesses in the state. As of 2019, the Bureau of Labor Statistics indicated that the unemployment rate in Hawaii was 2.6%, 0.8% lower than the national average of 3.4% from the same timeframe. This rate has also decreased throughout 2019, as it was 2.8% in July of 2019.
As with most states, the best locations to start a business in the state of Hawaii include urban areas and the suburban regions that surround them. The top cities for business owners in HI include:
- Pearl City
While several industries do well in Hawaii, certain sectors thrive. Tourism has long been the leading industry in the state, as people from around the globe flock to Hawaii each year.
Agriculture is also a booming industry here; the state is the second largest producer of sugar can in the U.S. Defense is also a key sector here, as all branches off the armed forces have bases located in the state. Another industry that also thrives here is manufacturing; specifically the manufacturing of cotton-based goods, such as clothing.
Commercial Insurance Requirements In Hawaii
The Hawaii Department of Commerce and Consumer Affairs regulates insurance in HI. Hawaii mandates very few forms of insurance coverage by law. They enforce worker's compensation.
Hawaii requires you to have worker's compensation insurance if you hire even one employee on a regular basis. This includes part-time employees, family members, minors, and immigrant employees. It is not required for independent contractors or domestic employees, though you should check to make sure any contractors you have are true contractors, and not employees.
Hawaii also requires all business-owned vehicles to be covered by commercial auto insurance. Other types of business insurance that business owners should carry depend on the specific industry.
Additional Resources For Information Technology & Internet Insurance
Learn about small business IT technology insurance policies that help protect IT businesses, consultants & subcontractors from the unique risks that small tech businesses face when they work.
- Application Development
- Amazon Seller
- Computer Electronic Repair
- Computer Programming
- Computer System / Network Developer
- Cyber Liability
- Data Breach
- eBay Sellers
- Internet Business
- IT Consultant
- Online Store
- Software Developer
- Technology Services
- Website Design
Some the more popular IT businesses do IT contracting or freelancing work. These businesses have specific risks they face, and can have huge exposures to uncommon risks. Even if the business is very careful, a small oversight or mistake can lead to a large and expensive lawsuit.
For information technology companies, like some of the more popular ones listed below, data security is paramount:
Application Development (Mobile & Web), Business Intelligence / Data Mining Businesses, Computer Installation & Repair, Computer Programming, Computer Retail Store, Data Analysts, Architects & Scientists, Database Administrators, Frontend Developers, Hosting, IT Business Consulting, IT Project Management, IT Staffing, IT Training, Information Technology Consulting, Life Sciences & R&D, Network Architects, Network Security Consultants, System & Network Design, Technical Writing and Web Site Development.
The IT business segment has a critical need for professional liability and errors and omissions coverage. If coverage applies, the insurer has several rights and duties such as providing a legal defense against claims and suits brought by parties claiming damages. The insurer is permitted to investigate all claims to determine whether they are covered by the policy and they may choose to litigate, deny or settle claims.
Most policies providing coverage for electronic data liability, computer professional liability, and computer errors and omissions are claims-made contracts.
Minimum recommended small business insurance coverage: Business Personal Property, Business Income with Extra Expense, Equipment Breakdown, Computer Fraud, Employee Dishonesty, Accounts Receivable, Computers, Valuable Papers and Records, General Liability, Employee Benefits Liability, Errors and Omissions Liability, Professional Liability, Umbrella Liability, Hired and Nonowned Auto Liability & Workers Compensation.
Other commercial insurance policies to consider: Building, Earthquake, Flood, Real Property Legal Liability, Forgery, Cyber Liability, Employment-related Practices Liability, Directors and Officers Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.
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Also learn about Hawaii small business insurance requirements for general liability, business property, commercial auto & workers compensation including HI business insurance costs. Call us (808) 300-0578.