With the Explosion of Tech Companies Comes the Need for Cyber Liability Insurance

Today virtually every company, regardless of size, is a “tech” company; nearly every business has some connection to the Internet, and indeed today most have websites.  Social media platforms have become a critical component of online marketing strategies for companies big and small.  Considering the use of logos, images, business names, symbols, copyrights, trademarks, and all that is necessary for businesses to compete today, is cyber liability insurance really necessary?  The short answer – yes.

Think about it for just a moment:  Even companies who do not actually conduct business online, such as perhaps an auto collision repair shop, still use the Internet to interact with insurance providers via web portals.  In a tech-savvy world, much can happen and does on a daily basis.  Defamation, copyright or trademark infringement, data breach, the risks are increasing for not only large corporations, but small companies as well.

Cyber crime is one of the biggest threats today for companies who conduct any business activity at all online.  Unfortunately, many individuals neglect to realize how vulnerable their businesses are to cyber crime, and fail to take action to reduce exposure.  Employee error can result in cyber crime, so staff must be diligently trained on data transmission.  Companies whose websites or other online systems are “hacked” leave their customers’ personal data (such as name, banking information, credit card numbers, etc.) vulnerable, and often in the hands of criminals.

On the Internet, anything can happen.  Many companies do all possible to ensure their websites and other online properties are secure, however many criminals are extremely intelligent.  Data breach is an extremely serious matter, as are intellectual property infringement, defamation, and employee error.

Is cyber liability insurance a good idea?  Absolutely, considering the growing trend of cyber crimes committed upon businesses of every size.

The Internet presents many challenges for businesses today; at Spotora & Associates, our Los Angeles business attorneys assist with all technology related, from licensing agreements to protecting and defending your intellectual property on the Internet.  As seasoned LA business attorneys, we understand the challenges companies face today in a “virtual” world; let us help you with your needs.

Tags: ,

This entry was posted on Monday, June 8th, 2015 at 2:53 pm and is filed under Business & Corporate Law, Intellectual Property, Technology. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.