Virus Liability Endorsement

Businesses are relying more and more on computers, storing vital data in them and thereby becoming vulnerable trying to protect the data from being destroyed or lost forever. There are horror stories of companies closing due to critical, irreplaceable data loss due to various reasons. All businesses that store critical data in computers or servers such as, company records, financial information, those that have a web site and use e-mails etc. need to have proper virus liability endorsement to be included in their professional liability policy. It should provide coverage for loss of data, replacement costs for hardware and software damaged by a computer virus or other malicious software; it also covers claims arising from damage as a result of hacking or unauthorized access to the system.

Reasons for Loss of Data:

# Virus attacks, such as Trojans, worms, malicious software instigated by an employee or outsider.

# Due to hacking.

# Employee error- unintentional and intentional

# Power, telecommunication failure

# Theft or misplacement of data

# Fire and other natural calamities that may cause data to be destroyed.

Businesses are under constant threat of data being misused and destroyed intentionally or accidentally by employees and intentionally by hackers. It is better for businesses to go for a good virus liability endorsement that will offer them a degree of protection to cover their losses and get back to business.

When businesses consider the effect of lawsuits arising from misuse of stored data, or unintentional, breach of confidential information in websites or e-mails, they will realize the need to take proper counter action to safeguard them. Several insurance policies offer coverage against data loss and the liability risks of using, storing and transmitting data. The policy also covers data recovery, restoration, re-creation and replacement costs as well as costs of any lawsuits. The carrier that offers virus liability endorsement also provides access to data restoration experts to get back in business as fast as possible. The premium is based on the extent of the coverage as well as the size of the company. It also covers data loss of an insured website hosted by a third party.