With the emergence of social media and the vast amount of information on the web, most business functions rely on computers and the Internet in some capacity. But the convenience of using computers is accompanied by many risks, including viruses, hackers, or use of your financial information to make unauthorized purchases. As a result, cyber liability is becoming more necessary.

Many companies believe their commercial general liability (CGL) policy will provide coverage for business interruption, intellectual property damage and similar losses. THIS IS NOT THE CASE. Under CGL policies, “property damage” is defined as physical injury to tangible property. Insurers are avoiding liability by using specific exclusions and requiring endorsements for cyber coverage.

Cyber liability coverage may include an e-comprehensive policy. This policy may cover:

• losses caused by fraudulent modification
• accidental alteration
• destruction to all electronically stored information
• losses caused by malicious copying of trade secrets
• extortion
• introduction of a virus

E-mail is an essential tool of today’s fast-paced business culture. However, messages taken out of context may cause difficulty. Establish an e-mail usage policy and educate employees on the proper use of e-mails and surfing the Net.

Contact us to review your current insurance policies. Find out what is covered in your general liability and professional liability policies.

Precautions for Social Media Use

• Remember that protecting the reputation and credibility of your employees is just as important as protecting your business reputation.
• Never enter your password into third-party sites that ask permission unless it is a trusted source.
• Many of the social networking sites today allow tiers of access to personal or business profiles for offering limited access to certain user groups. Stress the importance of these tools to employees, making sure those that connect with clients or co-workers may only view appropriate content.
• Be sure your company’s social network password(s) are not the same, or similar, to any other passwords used in the past.

Avoiding Phishing Scams

• Be extremely wary of urgent e-mail requests for any personal or financial information (yours or a client’s); if you suspect the message is phony, do not use the links included in the e-mail.
• E-mail personal or financial information only if the site is secure (sites that start with https://).
• Never disable anti-virus software.

Outsmarting Spyware

Do not download any unauthorized programs or files to your computer. Free MP3 files or other programs often include software (adware) that tracks your Internet activity.

Understanding Cookies

When you visit a Web page, a cookie is placed on your computer as a unique identifier. Cookies allow a Web server to store information on your computer and later retrieve it – like a personalized user ID.Internet settings can be personalized for higher or lower security levels regarding cookies.

Use Common Sense

If you ever suspect that an e-mail, website or link is not legitimate, do not click on it! It could have serious consequences if it contains a virus or spyware.

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