Today, doing business online is standard operating practice for many self-storage businesses. Facility websites, online marketing, social media, property management software, electronic databases and cloud-based computing streamline many necessary tasks, improve efficiency, and enhance both marketing and customer service. However, this reliance on technology also may create exposures that could result in costly lawsuits and claims.
You have been hearing the term “cyber liability” more often in recent months as a result of high-profile cyber incidents. With the widespread adaptation of technology across hundreds of industries, cyber liability is now an issue that affects every business with exposures including computer viruses, data theft, identity theft and other cyber crimes.
Insurance companies are responding to the growing need for cyber liability coverages by developing new policies to address a wider range of exposures including both first-party and third-party liability.
• Business Interruption: Interruptions in business due to breaches of a company’s network
• Crisis Management: Costs of retaining a public relations firm to help mitigate damage to the policyholder’s reputation and brand
• Extortion/Threat: Costs to investigate, negotiate and settle threats made against the policyholder related to international computer attacks
• Privacy: Expenses for breach response services such as notification, credit monitoring and identity/credit repair
Third-Party Liability Coverage
• Security: Failure of network security to prevent the transmission of computer viruses or hacking
• Privacy: Failure to protect private or confidential information
• Media/Content: Libel, slander and other forms of disparagement as well as copyright infringement by website content
• Regulatory Actions: Regulatory actions brought by state or federal agencies to enforce privacy regulations
First-party coverage is commonly available for privacy breach response, which covers expenses incurred by the self-storage facility such as customer notification, credit monitoring, credit and identity repair, and computer and legal forensic services. Policies to address additional cyber liability exposures are becoming more broadly available in the insurance marketplace.
Schedule a meeting with your insurance agent to review your potential exposures and identify possible cyber liability coverage solutions. MiniCo Insurance Agency continues to monitor this area of coverage with the intent to enhance our coverage options in the future.
President and CEO