Exposed! Don't Get Burned By a Cyber Attack
No staffing company, big or small, is immune to a data breach. Many small employers falsely believe they can elude the attention of a hacker, yet studies have shown the opposite is true. According to Verizon Communications 2012 Data Breach Investigations Report, 72% of the 855 data breaches analyzed were at companies with 100 employees or less.
Where You're Exposed
- Data breaches - Increased government regulations have placed more responsibility on companies to protect clients personal information. In the event of a breach, notification of the affected parties is required by law. This will add to costs that will also include security fixes, identity theft protection for the affected and protection from possible legal action.
- Intellectual property rights - Your company's online presence, whether it be through a corporate website, blogs or social media, opens you up to some of the same exposures faced by publishers. This can include libel, copyright or trademark infringement and defamation, among other things.
- Damages to a third-party system - If an email sent from your server has a virus that crashes the system of a customer or the software your company distributes fails, resulting in a loss for a third party, you could be held liable for the damages.
- Cyber Extortion - Hackers can hijack websites, networks and stored data, denying access to you or your customers. They often demand money to restore your systems to working order. This can cause a temporary loss of revenue plus generate costs associated with paying the hackers demands or rebuilding if damage is done.
- Business Interruption - If your primary business operations require the use of computer systems, a disaster that cripples your ability to transmit data could cause you, or a third party that depends on your services, to lose potential revenue. From a server failure to a data breach, such an incident can affect your day-to-day operations. Time and resources that normally would have gone elsewhere will need to be directed towards the problem which could result in further losses.
Who Got Burned and HowExample #1
An in-house staffing employee mistakenly distributed email copies of hundreds of staffing employee W2s to an email address that auto-populated into their email system. It was an honest mistake, but cost the staffing firm $75,000 in credit monitoring for those individuals, should their identities be stolen in the future.
A hacker released a computer worm that launched a service attack against an IT placement firms entire system. The infection caused a 48 hour shutdown of the entity's computer systems. The IT staffing firm incurred extensive costs and expenses to repair and restore their system, as well as business interruption expenses which totaled $750,000.
The Right SPFCyber Liability Insurance is specifically designed to address the risks that come with using modern technology; risks that other types of business liability coverage simply wont. The level of coverage your business needs is based on your individual operations and can vary depending on your range of exposure. It's important to work with a broker that can identify your areas of risk so a policy can be tailored to fit your unique situation. To learn more about cyber threats, listen to the recording of an Assurance University Replay webinar.
ABOUT THE AUTHOR