Cyber Exposure: It Came in Like a Wrecking Ball
In a world of brick and mortar, it’s difficult to see where computer security could ever be an issue. But even if your business spends more on concrete than software, the entire operation runs on computers and technology. From submitting bids online, to email, to invoicing, most information is ultimately passed through a computer and over the internet. Bank account numbers, passwords and employee records are just a few items sent between every business network.
This data can cause huge and expensive problems if not properly protected. Newsworthy examples include credit card data stolen from retailers and patient records taken from hospitals. But those events make the news only because of their size or sophisticated means. The reality is that most data breaches occur for much more mundane reasons – like lost laptops, stolen equipment or compromised passwords. For every event that makes the front page there are hundreds that don’t. In fact, some reports show up to 90% of companies experience a data breach over the course of a year.
When a breach event occurs, a myriad of state and federal laws kick in determining responsibility to send notice, fines and compensation to damaged parties. With the cross-border nature of communications, several state rules can apply to a single event, even to the point of requiring differing standards of care. This is a logistical nightmare for any business and requires vast expenditures simply to comply with law, let alone to fix the problem or handle subsequent lawsuits.
This is where cyber (or “privacy”) liability insurance can help. Not only does it let you transfer risk, but you get the knowledge and experience your carrier partner has in responding to these events. Most carriers offer tools to implement best practices and security audits you can use to assess and mitigate your risk potential. Then, should the unthinkable happen, you’ll have an insurance policy that not only pays legal costs, but can also include expenses like forensic investigation, lost income or credit report monitoring.
Simply by the nature of today’s communication, data security and cyber liability are major areas of risk for all businesses. This means not only ensuring security but budgeting for the unexpected. Cyber liability insurance is key in that process and often the most cost effective. With a small premium payment you can get access to legal counsel, support in navigating the regulatory environment, security specialists and a fund to pay damages. For these and many other reasons, cyber liability insurance should definitely be a part of your standard insurance program.
Want more information? Chat with a cyber security expert today!
Source: About Network Security: Survey of IT & IT Security Practitioners in the U.S.; Juniper Networks & The Ponemon Institute; June 2011 cited in “Worth the Risk” Highlights from the Chubb 2013 Private Company Risk Survey, Chubb Group of Insurance Companies
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