Common Questions Answered about Cyber Liability Insurance

Any business today that operates online in any capacity faces cyber risk. It’s not even a question and as technology becomes more sophisticated, the threats we face, increasingly dangerous and complex – which is why every business and organization needs to be prepared with cyber liability insurance. At Ellis agency, we understand the complexity of cyber threats and have cyber liability insurance solutions to help protect your business assets.

Cyber threats are all too real and data loss can strike when you least expect it.

What are some of the threats to my data?

  • Lost or stolen device or media, corrupt backups, Phishing, employee misuse, even improper disposal or accidental loss of paper documents and document management devices.

Doesn’t my General Liability policy cover me?

  • No. Not at all.  It does cover the physical hardware but the information on them and although there have been very specific circumstances where General Liability covered a data loss or breach those holes are being closed to the average policy in favor of the more specific Cyber liability.
  • Going a step further BI or Business Interruption coverage will not cover outages or data loss caused by computer viruses or hackers.

How much does Cyber Liability insurance cost?

  • Depending on the company you choose some 1 million dollar policies start out around $1200 per year.  $100 per month for piece of mind!

What incidents do Cyber liability insurance policies cover?

  • Again, depending on the company and policy you choose, a few things are cyber extortion or “ransomware”, DOS or Denial of service, network security and privacy, data breach to name a few

What protection will my policy cover providing I actually do have to make a claim?

  • A partial list would be: Forensic Investigation of the breach, Legal counsel, Customer or client notification costs of breach, credit monitoring services, Public relations expenses, and business interruption (loss of Profits and expense while the network is down and being repaired.

Bottom line is Cyber liability insurance is part of our business world today if you collect or process financial or identifying data on  or from your clients.  first party, second party and third party liability has its own grey areas legally and you may be equally liable for a breach even if a vendor made the mistake causing the breach.  E&O or Errors and Omissions insurance nor General liability insurance provide significant coverage and in fact most exclude whats commonly known as Cyber liability.  While there is no ASSURANCE that you’ll always be protected and never have to worry there is INSURANCE to know that if and when the time comes and you need it that that wont be one more frustration compounding an already stressful experience.  Give us a call for a quote for your business today.

Whole Life Policies as an Investment

Whole life policies are indeed a good investment.  They offer diversity and balance between insurance and investment.  You need to look closely at your options before making any purchase decision but if you are considering an easy affordable investment give us a call before you purchase.  Until then read what this article has to say about investing in Whole life policies.  If you are ready to get a quick quote here is a tool to do that as well here on your own

On the surface, life insurance sounds like an easy concept to grasp — you pay an insurance company a monthly or annual premium, and upon your death, the company pays out a sum to your beneficiaries.
But permanent life insurance policies such as whole life insurance also contain an investment component, and that’s where things can get confusing. Some of the money paid into your whole life policy accumulates “cash value” in the form of a tax-sheltered investment account that the policyholder can borrow against. Insurance companies tout these policies as not only a way to leave a financial legacy to your heirs, but also as a good investment tool.
Critics of this strategy point out that returns on these investments tend to be lower and fees higher than with other investment vehicles and that term life insurance — a cheaper life insurance option that only covers a certain number of years and does not contain an investment component — is a better fit for most people.

We asked financial advisors Steven ElwellDamon Gonzalez and Brian McCann, who are members of NerdWallet’s Ask an Advisor network, for their opinions on whether whole life insurance is a smart way to round out your overall investment strategy.
Should everyone consider a whole life insurance policy as part of their retirement savings strategy?Steven Elwell: While everyone can consider a whole life insurance policy as a part of their retirement savings strategy, for the vast majority of people there will be other, more attractive options to use first. For most, their employer’s 401(k) will be the first choice, especially if there is an employer match, which is essentially free money. After that, IRA and Roth IRA accounts should be the next consideration.
Brian McCann: There are some very important reasons to have a whole life policy, such as estate tax issues, care for a disabled child or dependent, and liquidity for closely held businesses. If you need a whole life policy for such a reason, you may also be able to benefit from the cash value that builds up in the policy for retirement. But I generally do not encourage people to save for retirement using life insurance policies. They can be an expensive way to save.
Damon Gonzalez: I don’t recommend these policies for everyone. Most Americans cannot afford to buy the appropriate amount of life insurance coverage through whole life insurance alone. The median income in the U.S. is about $54,000 per household, and I think only the top 20% of income earners should consider whole life. Term insurance is cheaper and is almost always the best type of insurance for 80% of the nation.