Cyber Liability Insurance vs. Intellectual Property Insurance

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Companies address any exposure to liability through varying lines of insurance. Among the risks facing the company are those associated with cyber businesses and intellectual property. These are highly valuable facets of business that require high protection. The insurance industry offers products that address exposure to these risks. These are cyber liability insurance for risks associated with cyber businesses and intellectual property insurance for those risks linked to intellectual property. This paper compares and contrasts these two forms of insurance.
First, cyber liability refers to risks associated with storing company data, or conducting business on or via the internet; publishing a website; or through smartphones and tablets (Nelson, & Harris, 2013. This insurance is critical for organizations that garner their revenue from computer networks. These include: music, photo and video sharing websites; digital, social and community media; games and software apps; web publishers, content creators, bloggers, wikis; online recording and broadcasting companies; e-tailers; health care providers and professional service companies(Government of Idaho, 2016).
Purchase of this insurance covers against: data breach, loss or damage to a network or data; media liability (web content), malicious code, extortion and eVandalism (Nelson, & Harris, 2013). It is evident therefore that companies that conduct their business over the internet require cyber liability insurance. The cost of not purchasing this insurance is that the company may lose its good reputation, which translates to reduced customer loyalty and eventually leading to loss of the company’s net income (Government of Idaho, 2016). Despite its urgency, however, undertaking this policy is a very expensive venture for many businesses.
On the other hand, intellectual property insurance covers the most valuable asset of the company, which is its intellectual property (Glazier, 2016). Intellectual property is that which provides the companies a competitive advantage, and in a company, it entails patents, copyrights, trademarks, and trade secrets (Glazier, 2016).
According to the United Kingdom Intellectual Property Office 2016, the benefits of purchasing intellectual property insurance are vast. They include:
• Protection of cash flow
• It allows the business power to take action to enforce their rights despite not having financial backing
• It improves the company’s negotiating position
• It may allow the intellectual property to be viewed as collateral hence increasing its value
On the downside, however, acquiring this coverage is expensive since insurers must determine the level of premium that an organization is viable to receive. This venture depends on four criteria that is (Intellectual property office, 2016); the level and type of cover required; the IP rights that are being insured; the sector that the business operates; and the territorial scope of the businesses protection.

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