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Commercial Lines Cyber Liability CoverageLike many businesses, your company probably uses computers to send, receive, or store electronic data. Such data might include sales projections, tax records, and other information owned by your business. If the data is lost, stolen, or damaged due to a security breach, it could be very costly to replace or restore. Your computer system might also contain sensitive data that belongs to other parties such as clients, employees, and vendors. If the data is lost or compromised by a hacker, the owners might sue your company for damages. You can protect your business against the costs associated with data breaches by purchasing a cyber liability policy.

What Cyber Insurance Covers
Generally, cyber insurance is designed to protect your company from these primary risks through four distinct insuring agreements: network security, privacy, interruption to your business, and media liability. Below you will find an explanation of each and what specific cyber risks it covers.

Network Security
This aspect of cyber insurance covers your business in the event of a network security failure; which can include a data breach, malware infection, cyber extortion demand, ransomware, or business email compromise. Network security coverage includes first-party costs––expenses that you incur directly as a result of the cyber incident, including:

  • Legal expenses
  • IT forensics
  • Negotiation and payment of a ransomware demand
  • Data restoration
  • Breach notification to consumers
  • Credit monitoring and identity restoration


Privacy Liability
Privacy Liability coverage protects your company from those liabilities arising out of a cyber incident or privacy law violations. These third-party costs can arise, for example, from liabilities required in a contractual obligation, all the way to regulatory investigations by governments and law enforcement. An example would be defending your organization from consumer class action litigation and funding a potential settlement in the event of a cyber incident or data breach.

Network Business Interruption
Network business interruption coverage provides a solution for companies that face an operational cyber risk. When your network, or the network of a provider that you rely on to operate, goes down due to an incident, you can recover lost profits, fixed expenses, and extra costs incurred during the time your business was impacted. This includes loss arising from:

  • Security failures, like a third-party hack
  • System failures, such as a failed software patch or human error


Media Liability
This provides coverage for intellectual property infringement, other than patent infringement, resulting from the advertising of your services. It often applies to both your online advertising, including social media posts, as well as printed advertising.

At Gulfshore Insurance, we understand the complexity of cyber policies. Regardless of your business’ size or industry, we have a cyber insurance solution to fit your needs.

Jon White is Client Advisor at Gulfshore Insurance specializing in community and condominium associations. Jon works with a wide range of business clients to deliver strategic risk analysis and guidance. Comments and questions are welcome at jwhite@gulfshoreinsurance.com

Gulfshore Insurance is a Naples, Florida based insurance agency specializing in business insurance including liability insurance, property insurance, workers compensation insurance, vehicle insurance, business income interruption insurance, cyber insurance, commercial umbrella insurance, and more. Our insurance and risk management advisors are industry specialists for condominium associations, golf and country clubs, oil and petroleum marketers, construction, landscaping, churches and non-profits, and work comp. Navigating insurance requires an experienced and trusted insurance agent who understands your business risks and exposures. Gulfshore Insurance services Naples, North Naples, Marco Island, Bonita Springs, Fort Myers, Sarasota, Lido Beach, Longboat Key, Bradenton Beach, and Southwest Florida. We have office locations in Naples, Fort Myers, Fort Lauderdale, and Sarasota.

In today’s world, doing business online is an everyday occurrence, but for businesses, it does carry increased risks.  Do you know what your exposure is? Gulfshore Insurance is pleased to offer Cyber Liability insurance. To find out if you may need this type of protection, take this 8-question quiz. Your answers to the questions below help determine your level of risk.

Evaluate Your Level of Cyber Exposure:

  1. Does your business retain physical or electronic records of employees or other third parties with any of the following?
    – Social Security Numbers
    – Drivers’ License Information
    – Tax Identification Numbers
    – Birth dates
    – Medical or Health Records
    – Court Records
    – Police Records
    – Banking Information (Checking/Savings Account)
    – Email Addresses or Home Addresses
  2. Does your business have employees?
    – Yes
    – No
    Fact: Most data breaches involve an employee mistake. They can lose a mobile device, laptop, or paper records, or make costly errors such as opening an unauthorized email containing malware. In addition, they can even intentionally steal data.
  3. Does your business have an active website?
    – Yes
    – No
    Fact: Material posted electronically, or in written format, may lead to copyright or trademark infringement, or defamation litigation. If the website is transactional, additional exposures include possible hacking or disruption of your business via denial of service attacks.
  4. Does your business use third-party vendors (e.g. cloud, IT services)?
    – Yes
    – No
    Fact: Businesses in possession of personally identifiable information may be held liable for privacy breaches caused by their vendors or other third parties. As the owner of the data, your business is ultimately responsible for protecting it.
  5. Does your business use mobile technology (smartphones, tablets, laptops)?
    – Yes
    – No
    Fact: Loss of mobile devices and the electronic content contained therein is one of the leading causes of data breaches today.
  6. Does your business accept credit card payments, electronic payments, or have online bill pay?
    – Yes
    – No
    Fact: Almost 40% of all data stolen is credit card and other payment information. This is a category of data that is highly desired by criminals for resale on the black market.
  7. Does your business allow employees to use personal devices to connect to your network?
    – Yes
    – No
    Fact: Personal devices may not have the same security software and other connectivity procedures as company-provided devices. As a result, when these personal devices are connected to your network, there may be a higher exposure to virus or malware threats.
  8. Does your business store your customers’ corporate confidential information?
    – Yes
    – No
    Fact: Companies face liability for failing to protect their customers’ and business partners’ confidential information.

If you answered “yes” to one or more of the questions, your business has exposures which may lead to cyber-related claims or suits. Can you afford to self-insure these exposures? At Gulfshore Insurance, we understand the complexity of cyber threats and have solutions to help protect your assets. Regardless of your business’ size or industry, we have a cyber insurance solution to fit your needs.

Click here to download the Cyber Exposure Quiz

Joe Thompson is a Client Advisor and Partner at Gulfshore Insurance who specializes in managing risk for community associations and various contractorsComments and questions are welcome at jthompson@gulfshoreinsurance.com

Gulfshore Insurance is a Naples, Florida based insurance agency specializing in business insurance including liability insurance, property insurance, workers compensation insurance, vehicle insurance, business income interruption insurance, cyber insurance, commercial umbrella insurance, and more. Our insurance and risk management advisors are industry specialists for condominium associations, golf and country clubs, oil and petroleum marketers, construction, landscaping, churches and non-profits, and work comp. Navigating insurance requires an experienced and trusted insurance agent who understands your business risks and exposures. Gulfshore Insurance services Naples, North Naples, Marco Island, Bonita Springs, Fort Myers, Sarasota, Lido Beach, Longboat Key, Bradenton Beach, and Southwest Florida. We have office locations in Naples, Fort Myers, Fort Lauderdale, and Sarasota.

Below is an infographic that shows how serious ransomware attacks have become. Ransomware is by far the leading data breach exposure and the ransom amounts are growing exponentially. The cost of paying the ransom is just the tip of the iceberg when it comes to resolving all of the associated attack issues.

Ransomware graphic

Working with a trusted insurance agent who has proven expertise in cyber security and familiarity with the unique risks posed to the construction industry is the best way for companies to ensure that they are adequately covered.

Gulfshore Insurance is a Naples, Florida based insurance agency specializing in business insurance including liability insurance, property insurance, workers compensation insurance, vehicle insurance, business income interruption insurance, cyber insurance, commercial umbrella insurance, and more. Our insurance and risk management advisors are industry specialists for condominium associations, golf and country clubs, oil and petroleum marketers, construction, landscaping, churches and non-profits, and work comp. Navigating insurance requires an experienced and trusted insurance agent who understands your business risks and exposures. Gulfshore Insurance services Naples, North Naples, Marco Island, Bonita Springs, Fort Myers, Sarasota, Lido Beach, Longboat Key, Bradenton Beach, and Southwest Florida. We have office locations in Naples, Fort Myers, Fort Lauderdale, and Sarasota.