The "Legal-Ease" Glossary
This refers to digitally stored content (on a hard drive, removable device, or the cloud) owned by an individual or a business.
Any of the following can be considered “digital content” so long as it can be accessed online, in databases, on computers, or on servers:
- Intellectual property.
- Customer information.
- Financial information.
- And more.
Like physical assets, digital assets are valuable because they’re used to conduct business. And like physical business property, digital assets can be stolen, even though the thief won't be holding the property in their hands.
You can insure your physical property against loss or theft with a Property Insurance policy, but you usually can’t insure actual data against loss or theft. In other words, when your data is stolen, you can’t file a claim to reimburse you for the worth of your data, even though it has value. That’s because the value of data is often too hard to pin down. As the business world continues to rely more and more on the exchange of data, this may change. But for now, there are other forms of recourse.
You can buy Cyber Liability Insurance to cover the costs related to cleaning up after a data breach. And the aftermath can be quite expensive – you may have to:
- Negotiate with a cyber extortionist.
- Notify affected parties that their information was stolen.
- Patch security vulnerabilities in your network.
- Implement credit-monitoring services.
Luckily, first-party Cyber Liability coverage can address these staggering costs.
And as a final note, remember that as technology develops, the legal definition of "digital assets" will also evolve. Luckily, insurance companies are never far behind these changes and usually adapt accordingly.
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