ComptelPLUS Fall15 Show Daily Day 1

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COMPTEL PLUS Fall 2015 Business Expo
COMPTELPlus | Monday, October 19, 2015 Beka Publishing, 34
DAY 1
Cyber-risk continues to escalate, and service
providers and other businesses utilizing
technology to produce and deliver products
and services need to recognize and take precautions
against the unique business risks that this presents.
Specifically, companies should consider taking
on technology professional liability coverage,
also referred to cyber-liability coverage, which
addresses a lack of protection in commercial
general liability policies. General liability typically
doesn’t cover claims of third-party financial harm.
“Cyber-threats are real, growing in both number
and sophistication,” said Joe Weipert, vice presi-
dent of UNITEL, a COMPTEL partner. Weipert, who
will speak at the Networks Platform on Tuesday
at 1 p.m. at the conference, added, “There is an
increased potential for errors and omissions, copy-
right or trademark infringement, and breaches of
private information.”
He noted that “technology businesses today
are driven by data. With that comes the profound
responsibility to protect customers’ private infor-
mation, to prevent the inadvertent transmission
of computer viruses and to ensure that authorized
users are able to securely access your website or
computer network. The theft or misuse of private or
confidential customer information occurs daily.”
Any communications company engaged in
providing computer services, Internet services or
those companies using the Internet in its everyday
course of business can use cyber-liability coverage.
It protects businesses in the event that a third
party suffers a financial loss due to one’s product
or service not performing as it was intended or
expected, including the event of an error or omis-
sion. These policies also cover defense costs in the
event of litigation.
For instance, if a mistake were made and an
error made it into the code of a website or program
one’s company produced, and it isn’t found before
it is implemented hackers could exploit that to gain
access to corporate networks. If a third party depends
on this product or service to operate its business and
its operations are stalled due to a hack, causing them
a financial loss, they have grounds to litigate.
Commercial general liability coverage would not
cover a claim or any costs of litigation because of
the presence of an error.
Weipert added that cyber-liability policies
usually exclude product recall, but some will accept
damages for loss of use of a failed product. They
also generally exclude non-financial losses and
intentional or dishonest acts.
“A lot can be done to reduce or eliminate expo-
sures through better understanding of the cover-
age’s you currently have and do not have,” he said.
“Not all exposures require an insurance policy to
control or avoid a loss. Contracts can also have a
dramatic impact on your exposure to liability as a
result of the acceptance or transfer of risk. However,
some exposures are best solved by a technology
errors and omissions policy (cyber-liability).”
It is also essential to conduct a risk analysis to
identify what exposures exist in the first place.
“Purchasing a cyber-liability policy may not
meet your needs at all,” saidWeipert. “In fact,
without a thorough analysis of risk and coverage,
you may end up buying a cyber-liability policy that
only partially meets your needs.” o
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Amid a Thriving Threat Landscape, Carriers Should
Consider Cyber-Liability Insurance